The increase in forecasts for the global production of vegetable oils in 2023/24 MY lowers stock quotes

Published 2023년 5월 17일

Tridge summary

The USDA's May report outlines the balance sheet for vegetable oils for the 2023/24 marketing year, predicting an increase in the production and stocks of oils due to higher global production of soybeans, palm oil, and olive oil. The global oil production is anticipated to rise by 7.5% compared to the previous season, reaching 223.29 million tons. Notably, soybean oil production is expected to hit a record 62.47 million tons, while palm oil production will reach a record 79.56 million tons. However, sunflower oil production is projected to decrease to 20.93 million tons. Furthermore, the report discusses the impact of lower prices and export increases in palm oil, lower indicative prices for crude palm oil in Indonesia, and reduced base import prices for crude palm and soybean oil in India. Additionally, the report highlights a decrease in demand prices for sunflower oil due to an oversupply 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 published a balance sheet for vegetable oils for MY 2023/24. It is expected that in the new season, the growth of production and stocks of oils will continue due to the increase in world production of soybeans, palm oil and improved conditions for the production of olive oil, and the increase in soybean oil stocks is partially offset by a decrease in stocks of palm oil in Indonesia and sunflower oil in Turkey and the Russian Federation. According to the USDA forecast, global oil production in 2023/24 MY will increase compared to the current season from 217.05 to 223.29 million tons, which will exceed 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 MY 2022/23 and 59.22 million tons in MY 2021/22), palm oil - to a record 79.56 (78.14 and 72 .92) million tons, while sunflower oil will decrease to 20.93 (21.02 and 19.8) million tons. World ...

Source: Oilworld