Significant fluctuation of prices on the world market of vegetable oils was due to a number of factors that affected the world economy and caused inflation – from coronavirus pandemic, war in Ukraine to export ban in Indonesia, Matt Ammermann, vice president of StoneX Group, said during his speech at the online conference Sunflower Seed And Oil: New Reality On Global Market organized by APK-Inform on July 7.
"We would like to remind you that extremely important events are taking place on the world market of vegetable oils this year, which have a significant impact on the market and price formation. For several years, the demand for vegetable oils was formed under the leadership of the coronavirus pandemic and the development of the situation in China. In addition, since the beginning of the war in Ukraine, prices of vegetable oils have increased amid a collapse of supply of Ukrainian sunflower oil, as well as after Indonesia introduced a ban on the export of palm oil", – the expert noted.
However, in the medium term, there should be no concerns about the supply of vegetable oils, given that stocks of palm, soybean and sunflower oils will be sufficient to meet consumer demand in both food and biofuel segments.
"Due to the unique situation on the market of sunflower seed and vegetable oils amid the war in Ukraine, we can observe a significant increase in demand for sunflower seed. Despite predicted reduction of the oilseed crop in Ukraine in 2022/23 MY, the cultivation of sunflower seed will remain one of the most profitable for farmers, which, in addition to high demand, will be supported in the future by easier logistics and exports. After all, there is hope that European partners will help arrange the shipment of Ukrainian products. Moreover, Ukrainian farmers will actively sell sunflower seed due to possible problems with storing", – M. Ammermann noted.