Prices for vegetable oils have fallen from their high levels with ample supply, decreasing demand and the firm euro rate sending asking prices on a slide, Germany’s Union for the Promotion of Oil and Protein Plants (UFOP) said on 8 February.

Scarce supply had caused palm oil prices to rise by 18% since October 2016,

“Over the past several months, soyabean oil still benefited from uncertainty about the output volume of Argentinian soya. As weather conditions improved and with Brazil set to see a bumper crop, the high prices could not be maintained,” UFOP said.

“Moreover, US President Donald Trump's environmental policy makes the future use of soyabean oil for biodiesel fuel production uncertain. Rapeseed oil, which had also picked up on firming asking prices for feedstock, also lost some ground.”

Agrarmarkt Informationsgesellschaft (AMI) reported that demand for vegetable oils had waned appreciably over the past few weeks.

“Although the firm euro made imports to the euro area cheaper, buying interest was limited,” UFOP said.

As a result, fundamental market factors have had a greater impact on vegetable oil prices than crude petroleum oil prices have, it said, with the West Texas Intermediate (WTI) crude oil price rising by more than 70% since February 2016.