The global price of vegetable oils and the war in Ukraine

Published Apr 29, 2022

Tridge summary

The war in Ukraine has generated a real earthquake on the vegetable oil market, with a domino effect that involves the Italian food industry. More than 60% of the world production of sunflower oil comes from Ukraine and Russia. that of palm, after Indonesia, the largest producer in the world, bans its export because it is lacking on the domestic market due to strong foreign demand after the war in Ukraine interrupted sales of sunflower oil.

Original content

The lists of the national commodities exchanges continue to be affected by the increases in progress on the main world trading centers, caused by fears of the protracted war in Ukraine and by the conditions of water deficit (due to climate change) that are occurring in various countries around the world, can have a negative impact on various oil crops. While other producing countries have already suspended exports. The biggest problem of all is that of sunflower oil of which Ukraine and Russia are the largest producers in the world, and for a few days also of palm oil from Indonesia, the largest producer in the world. The consumption of sunflower oil has always been very high, however, in the past few weeks the demands have increased by far, forcing several food multinationals to fall back on rapeseed oil and other vegetable oils, and again on the oil of palm, which in recent years had been replaced with other edible oils (such as sunflower and olive oil). In this regard and given ...

Source: Frantoionline