The global vegetable oils market largely backed by stronger palm oil prices and lasting crude oil rise

Published 2022년 1월 31일

Tridge summary

The vegetable oil market is experiencing a surge in prices, primarily due to the strength of palm oil and the continuous rise in crude oil prices. Tensions at the Ukrainian border with Russia are also contributing to the price increase, as there are fears that an invasion by Russia could disrupt logistics flows. Adverse weather conditions are causing sharp price increases in Chicago for winter wheat, soybeans, and corn in key producing countries. Production in Brazil may fall short of estimates due to these weather conditions. Sunflower oil supplies from Ukraine saw an increase to USD 6.4 billion in monetary terms in Q1 2021, with the EU, India, and China being the largest importers. The Ukrainian government has recently regulated the prices of sunflower oil, adding it to a list of goods of significant social importance.

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Original content

The vegetable oil market is supported by the continuing strength of palm oil, but also by the almost uninterrupted rise in crude oil prices, the Agritel consultancy reports. Analysts mark that tensions at the Ukrainian border with Russia continue to support prices. In the event of an invasion by Russia, logistics flows would probably be severely disrupted. Prices in Chicago are rising sharply amid adverse weather conditions for winter wheat in the US, as well as for soybeans and corn in Brazil and Argentina. Production in Brazil could fall below 130 mln t compared to the 139 mln t estimated in the last USDA report. Soybeans are supported by the firmness of the oilseed complex, particularly palm oil, and by the continuing rise in veg oil prices. Ukroilprom previously reported that sunflower oil supplies from Ukraine in 12M 2021 in monetary terms increased to USD 6.4 bln. The EU, India and China remain the largest ...

Source: Latifundist