Global: The stock price of vegetable oil soared on the risk of supply disruptions

Published Apr 8, 2022

Tridge summary

World prices for sunflower oil have surged by 44% year-on-year by the end of March, largely due to supply interruptions following Russia's special operation in Ukraine. Ukraine, a major sunflower oil supplier, accounts for over 47% of global exports. The price increase has also impacted other vegetable oils like rapeseed, soybean, palm, and olive oil. Major agricultural trading houses have invested in facilities in the Black Sea region. India, the world's largest importer of edible oils, relies heavily on Ukrainian sunflower oil. Russia may implement export restrictions to control the surge in demand. In the US, sunflower seed production is anticipated to rise by 30-40% as the planting season approaches, although it is unlikely to significantly reduce price pressures.

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

Original content

By the end of March, world prices for sunflower oil rose by 44% year-on-year, the growth of quotations was provoked by Russia's special operation in Ukraine, which led to interruptions in the supply of raw materials and the finished product, writes The Wall Street Journal. Ukraine is a major supplier of sunflower oil, accounting for more than 47% of global exports, according to research firm Mintec. According to the Oilworld portal, the price of a vegetable oil futures contract for delivery in June on FOB (with loading) conditions in the Black Sea ports rose by 22.78% over the month to $1,940 (as of April 6). The WSJ notes that the prices of oils produced in other countries have also risen, including those that are not usually considered substitutes for sunflower oil. Rapeseed oil prices soared 72%, according to Mintec data. Prices for soybean oil rose by 41%, palm oil rose by 61% and olive oil rose by 15%. With the exception of olive oil, prices for all other commodities reached ...

Source: Oilworld