USDA global oil and oil seeds review in June 2022

Published 2022년 6월 14일

Tridge summary

The article highlights a significant increase in the price difference between US and South American soybean oil, with the former having a premium of nearly $150 per ton more than the latter. This gap has widened from April's $130 per ton, driven by a stronger supply-demand balance in the US, which consumes 93% of its soybean oil production. In contrast, global markets, particularly Brazil and Argentina, are more influenced by external demands. The article also addresses the impact of geopolitical factors and environmental conditions on vegetable oil supplies, contributing to a sharp increase in soybean oil prices. Additionally, the article discusses the logistical challenges faced by Ukraine, a major producer and exporter of sunflower seeds and oil, due to the conflict, leading to rerouting of exports and significant fluctuations in the marketing year's export forecasts.

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

Original content

The difference in export prices for US soybean oil compared to South American soybean oil has grown to almost $150 per ton. This is $20 per ton more than the difference in quotations observed at the beginning of April. Despite significant growth, the premium remains well below the level reached in June 2021, when the premium peaked just below $400/t and averaged around $270/t over the April-August period. In percentage terms, current premiums are also lower at 8 percent compared to 20 percent last year, oilworld.ru reports citing the USDA. Rising US soybean oil price premiums reflect a stronger balance of supply and demand in the United States relative to Brazil and Argentina. The US domestic market is forecast to consume 93 percent of all soybean oil produced this year. This compares with 80 percent in Brazil and 13 percent in Argentina when biodiesel exports are included. The United States is also a net importer of vegetable oil, which is projected to account for almost a ...

Source: Oilworld