In the first days of June, vegetable oil prices have fallen sharply, with palm oil, with a 22% drop in 15 days, being the oil with the biggest fall. Sunflower oil, after many months showing prices at multi-year highs, has also fallen notably. Besides rapeseed, coconut and palm kernel oils also fell though to a lesser extent.
The attached table shows the quotations of the main vegetable oils and other reference values and their variation in the fortnight from 3 to 18 June:
Oil World estimates that global production of the 17 main oils and fats will reach 250.3 million tonnes this season 21/22, 4.3 % above the 20/21 season. The most important increase will be for palm oil (+3.8 million tonnes) and sunflower oil (+2.9 million tonnes).
In the case of rapeseed oil, the planted area has increased and if weather conditions are good, production is expected to grow by around 2.5 %. However, starting from very low stocks, the supply/demand situation will remain tight in the coming months. On the other hand, in soybean oil, production growth is expected to slow down.
Factors such as the Biden administration’s decisions on biodiesel in the US and the evolution of the Indonesian mandate can add or alleviate tension in the market.
In order to better understand these and other points, we invite you to download and continue reading LIPSA’s market report below, where you can get first-hand information on:
1. Evolution of reference markets
2. Oilseeds and oil balance
3. Soybean oil
4. Palm oil
5. Sunflower oil
6. Rapeseed oil
7. Lauric oils (coconut and palm kernel)