There is a number of factors resulting in strong imbalance between supply and demand on the global market of vegetable oils, declared Aaron Hanson, analysts of LMC International within Grain&Maritime Days in Istanbul 2022.
Particularly, he pointed out the weather that had cut soybean and canola output in the key countries and slowed the recovery in palm oil production as well as soared input costs, led by fertilizers. Additionally, there are efforts to control local food prices through export restrictions that are reducing the availability of supplies for importers. Moreover, some governments remain unwilling to cut their biodiesel mandates, however, the policy is starting to shift.
“War in Ukraine remains a strong factor. In January, Black Sea sunflower oil exports were expected to grow well over 2 mln tonnes to 13.5 mln in 2021/22 MY. We now expect a drop in forecasted Black Sea exports of close to 4 mln tonnes”, – A. Hanson added.
