Increase in forecasts for the global production of vegetable oils in 2023/24 MY

Published 2023년 5월 17일

Tridge summary

The USDA has reported an increase in the production and stocks of vegetable oils for the 2023/24 season, driven by higher global production of soybeans, palm oil, and olive oil. The world production of oils is projected to rise by 7.5% to 223.29 million tons. However, futures for July palm oil and July soybean oil futures on the Chicago Stock Exchange fell by 4.5% each. The volume of soybean processing in the US in April decreased by 6.8% to 4.71 million tons, leading to a increase in stocks of soybean oil. Demand for sunflower oil remains at $850-$950/t delivered, but demand is dampened by a strong supply of cheap palm oil.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In the May report, USDA experts released the balance sheet for vegetable oils for 2023/24 MY. Oil production and stocks are expected to continue to grow in the new season due to an increase in global production of soybeans, palm oil and improved conditions for olive oil production, while the increase in soybean oil stocks is partially offset by a decrease in palm oil stocks in Indonesia and sunflower oil stocks in Turkey and the Russian Federation. According to the USDA forecast, world production of oils in FY 2023/24 will increase compared to the current season from 217.05 to 223.29 million tons, which will exceed the 207.87 million tons of the 2021/22 season by 7.5%. At the same time, the production of soybean oil will increase to 62.47 million tons (58.92 million tons in 2022/23 MR and 59.22 million tons in 2021/22 MR), palm oil - to a record 79.56 (78.14 and 72 .92) million tons, while sunflower will decrease to 20.93 (21.02 and 19.8) million tons. World final reserves of oils ...

Source: Graintrade