Global vegetable oil production to hit a 4-year high, which could lead to lower prices

Published 2021년 10월 20일

Tridge summary

Global vegetable oil production is projected to increase by approximately seven million tons in the 2021/2022 period, the largest rise in four years, with palm oil leading the growth. This is expected to result in lower prices for oil but higher prices for meals. Indonesian palm oil production is predicted to rise by 1.7-2 million tons, and Malaysian production by 1 million to 1.2 million tons. The Malaysian government's decision to allow 32,000 foreign workers to enter the country despite labor shortages could help mitigate the impact of low production.

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Original content

Global production of four vegetable oils, namely palm oil, sunflower oil, soybean oil and rapeseed oil, is expected to grow by about seven million tons in the period 2021/2022, the largest increase in four years, predicts the head of OILWORLD (Germany) Thomas Milke. According to the analyst, this will happen after two years of global production shortages and a sharp decline in vegetable oil reserves, oilworld.ru reports with reference to The Star. “If these predictions come true, vegetable oil prices will decline and meal prices will rise relatively higher over the course of the year,” he said in a slide presentation during today's Malaysian Palm Oil Council (MPOC) online seminar “Price Indicators trends ". Thomas Milke said that global palm oil production only recovered 1.7 million tonnes between October 2020 and September 2021. According to him, this season (2021/2022) an increase of 3.5 million to four million tons is expected. Production in Indonesia is expected to rise ...

Source: Oilworld