Market Report May 2026
Act today and plan for tomorrow
Today’s highly volatile markets demand our full attention every single day. In times like these, thinking entrepreneurially ahead is becoming an ever-greater challenge. One possible first step, which some of you are currently suggesting to us at trade fairs, is this: let us work closely together to develop innovations for your product portfolio. To this end, we offer a wide range of refinement options for our natural oils – from enriching them with vitamins or flavours, through to customised blends with specific fatty acid profiles, right through to ready-made private-label solutions.
Please feel free to contact your dedicated contact person here directly.
Vegetable oils
Activity on the vegetable oil markets remains subdued. Given the current uncertainties, market participants are reluctant to enter into long-term contracts. As a result, rapeseed prices remain firm, with no sign of any easing. The European sunflower market remains stable. The low volumes are not expected to lead to supply problems until the end of the campaign in September, as demand remains cautious. The new harvest is currently hardly being discussed. Soy prices in Chicago are being supported by weather risks for the US harvest, rising crude oil prices and uncertainty surrounding talks to end the Iran conflict. Large global stocks are holding back the rise. The premium on spot is leading to subdued demand in Europe. The new harvest from the Northern Hemisphere in September could bring some relief.
The organic markets are characterised by widespread inactivity – the remaining volumes from the old harvest are seeking buyers, a process partly hampered by differing price expectations. Tension regarding the upcoming harvest is growing along the entire value chain. The lack of solid forecasts regarding volume and quality is making price formation considerably more difficult.
The situation in the Middle East, high crude oil prices, rising biodiesel mandates and signs of a strong El Niño in the second half of the year are supporting prices. Improved crop prospects are counteracting this. It is advisable to cover positions by the end of Q3.
With demand remaining stable, price increases are also expected from Q4 onwards due to the effects of El Niño. We recommend hedging until the end of the year.
The market is trading sideways to firmer. Copra prices are rising in the markets of origin, whilst drought is having a negative impact on cultivation. Current high export figures from the Philippines have so far been putting pressure on prices in Europe. We recommend hedging until the end of Q3.
Energy and freight costs are rising, whilst raw material prices remain largely stable. There is growing concern about drought in growing regions and the predicted, very pronounced El Niño. Against this backdrop, it remains to be seen whether the peak harvest period in the middle to end of Q3 will bring about price corrections. We recommend hedging until the end of Q3, with partial hedging in Q4 if necessary.
Palmkernel is trading at a lower price than coconut. With strong demand from the oleochemical industry, prices are holding steady. It is advisable to secure supplies until the end of Q3.
The new season in Africa began at the end of March – under pressure due to geopolitical tensions and logistical challenges, but with stable demand from China and elsewhere. We are pleased that both new and existing suppliers have successfully completed our approval processes for avocados. Please feel free to contact your designated contact person here with your requirements and needs.
The supply of freely available glycerol is approaching zero, and prices for refined glycerol have risen again in Europe. Rapeseed-based glycerol is produced as a by-product of biodiesel production – the latter having been significantly scaled back recently due to poor profitability. The conflict in the Middle East is creating further pressure, with the potential to restrict imports in the future as well.
Prices for all grades continue to be supported by energy and freight costs, as well as the severe shortage of glycerol. In some cases, this is compounded by poor availability of raw materials. We recommend hedging until the end of Q3.
The market is currently quiet, with stocks meeting current demand. However, supplies of high-quality products are expected to be limited. There are no signs of any changes in the short term. At this very early stage, the outlook for 2026/27 is positive, given the high water reserves.
Castor, including grades with SuCCESS sustainability certification
As we reach the midpoint of the harvest cycle, we continue to see good-quality coming in from the fields. Demand is picking up noticeably. Further factors likely to drive prices higher in the future include increased costs for freight and fertilisers. In addition, the predicted strong El Niño is set to affect the coming harvest. We recommend securing long-term coverage until April 2027.
If you are interested in grades with SuCCESS sustainability certification, please do not hesitate to contact us!
Yields from the current harvest are on a par with previous years. On the cost side, the machinery- and energy-intensive cleaning of the seeds is having an impact, whilst the weak local currency is putting additional pressure on prices. A slight easing of the situation is possible as the harvest progresses until the end of May. Our portfolio includes, amongst other things, organic quality from Egypt as well as conventional goods from our own pressing operations from seeds cultivated in Egypt or Germany. In all cases, we ensure quality through rigorous checks throughout the value chain.
Overall, the market is stable to slightly firm, with supply becoming increasingly tight at source. Competition between sources is intensifying, whilst the demand side is adopting a cautious approach. To ensure continued supply, we recommend securing supplies well in advance – longer lead times from global sources are to be expected.
Marine products
Marine Oil, omega-3. Friend of the Sea or MarinTrust
In Peru, around 20 percent of the quota for Fishing Season 2026 – I has been caught so far. Oil yields are only about a third of last year’s level, whilst the proportion of juvenile fish is significantly above average. A temporary fishing ban has already come into force in coastal waters. This is driving up diesel costs, as vessels have to sail further offshore. Given the uncertainty surrounding future price levels – driven, among other things, by expectations of a powerful El Niño – producers are currently setting very high prices. A downward trend remains out of the question.
Wool fats and the plant-based alternative Vegalan
The decline in demand for wool continues to support the market. Raw wool grease is currently sold predominantly on a spot basis; longer-term contracts are not available. We are able to supply various grades at short notice. Please also consider our plant-based alternative, Vegalan, which offers a significant price advantage and a consistent lead time of 3 to 4 weeks.
Oleoresins
Rising financing costs and freight rates have recently driven up prices for Chinese goods – in our case, exclusively non-Xinjiang products. Pricing for the coming season has begun; we will need to wait and see what impact El Niño has as the season progresses. We recommend securing long-term supply.
