During the month of February, we have continued with a very strong rise in the prices of all vegetable oils driven by several factors:
– the delay in the recovery of palm oil production in Asia
– the delay in the soybean harvest in Brazil
– very dry weather in Argentina
– tight sunflower oil availability in the Black Sea.In the following chart we see the price evolution of the 4 main vegetable oils in the reference markets from July 2017 to the present: |
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The situation with sunflower is particularly complicated, due to the significant loss of production of more than 5 million tons of sunflower seeds (equivalent to 2 million tons of oil), mainly in Ukraine and Russia. These two countries represent more than 60% of global sunflower production.
In this context, the prices of various oils are at the highest levels in recent years and in the specific case of sunflower in the last 9 years.
On the other hand, during the month of February, the Brent barrel has risen more than 10%, reaching 14-month highs, which gave extra support to the oil complex.
The attached table shows the quotations of the main oils and other reference values:
| In order to better understand these and other points, we invite you to download and continue reading LIPSA’s market report attached below, where you can learn first-hand about the following points:
1.Evolution of reference markets
2.Oil balance
3.Palm oil
4.Lauric oils
5.Soybean oil
6.Sunflower and high oleic sunflower oil |
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