Global sunflower oil shortage will lead to higher prices for rapeseed oil

Published 2022년 4월 11일

Tridge summary

The article highlights the upcoming shortage of vegetable oils on a global scale due to the decrease in sunflower oil supplies from Ukraine and Russia, which makes up 30% of the global trade. In response, Russia will implement an export quota for sunflower oil starting from April 15. This situation is further complicated by a 35% drop in Canadian rapeseed production for 2021-22, leading to a surplus of high-oleic rapeseed oil demand. As a result, farmers in Canada are being incentivized to produce more of this type of rapeseed. Additionally, the article anticipates that prices for rapeseed and oil will stay elevated in the 2022-23 season due to the expected demand exceeding the supply, with vegetable oil prices already approaching record highs.

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Original content

The cessation of sunflower oil supplies from Ukraine, the reduction of exports by Russia will lead to an acute shortage of vegetable oils on the world market, the Producer website reports. Meanwhile, Russia has announced that it will introduce an export quota for sunflower oil of 1.5 million tons from April 15 to August 31. The USDA has projected 3.65 million tonnes of sunflower oil exports from Russia in 2021-22, accounting for 30% of global trade. Processors and food processors can use corn or high oleic rapeseed oil. Soybean oil is not suitable for its taste. And palm oil and cottonseed oil contain too many saturated fats. The problem is exacerbated by a 35% decline in Canadian rapeseed production in 2021-22. As a result, demand for high-oleic rapeseed oil exceeds supply. Farmers are receiving bonuses of between $1.50 and $2.50 per bushel of high-oleic rapeseed produced in 2022, up 50 cents from normal. Meanwhile, rapeseed acreage in Canada remained flat at 22.5 million acres. ...

Source: Oilworld