Global: The stock price of vegetable oil soared on the risk of supply disruptions
Published Apr 9, 2022
Tridge summary
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.
Original content
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 record highs in March, according to Mintec. Global agricultural trading houses such as Cargill, Archer Daniels Midland and Bunge have invested in ports, grain and processing facilities in the Black Sea region since at least the early 2000s. However, after the start of the special operation, they suspended the processing of sunflower in Ukraine. Most of Ukrainian exports of sunflower oil, as well as ...
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