Global: A German expert expects an increase in the price of vegetable oils during the season

Published 2024년 11월 2일

Tridge summary

The world market is facing a vegetable oil supply shortage due to increasing demand and decreasing production and stocks, according to Oil World CEO Thomas Mielke. The available supply of the 17 main types of vegetable oils and fats is expected to see a significant decrease in growth in the 2024-2025 agricultural season, from 8.8 million tons to only 1.6 million tons. This situation is anticipated to drive up prices, impacting both consumers and producers. The energy sector's consumption of these oils is expected to keep palm, soybean, rapeseed, and sunflower oil as the primary sources for biofuels production, due to the expected shortage in other supplies. Additionally, the prices of the main vegetable oils, including palm oil, have seen significant fluctuations in recent years, with a notable increase of 110-180 dollars per ton or 10-18% in the 4 main vegetable oils in the late October 2024, indicating the severe impact of the supply-demand imbalance.

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

Original content

The world market has entered the territory of a shortage in the supply of vegetable oils due to the active demand for them combined with the trend of shrinking production and stocks, announced the editor-in-chief and CEO of the authoritative German company Oil World Thomas Mielke in his speech at the XXII International "Fat-and-Oil Industry-2024" conference in the Ukrainian capital Kyiv, cited by the electronic publication APK-Inform. Mielke specified that in the agricultural season 2024-2025, the growth in the offered quantities of the 17 main types of vegetable oils and fats on the world market could shrink to only 1.6 million tons, against 8.8 million tons per season 2023-2024 “Consumers and producers of vegetable oils will need to prepare for higher prices in 2024-2025. The main reason is the steady increase in demand for vegetable oils worldwide. In 2003-2004, the growth in the demand for vegetable oils was 4.1 million tons, in 2013-2014 - by 7.1 million tons, and in ...

Source: Sinor