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Global vegetable oil prices have risen again, reaching 2022 levels amid escalating tensions in the Middle East, according to World Bank forecasts.
This increase is largely attributed to the actual disruption of shipments through the Strait of Hormuz due to escalating conflict, which has halted the flow of essential goods and increased pressure on global agricultural markets. Rising shipping costs and increased marine insurance premiums also directly contributed to the price hike.
In March, the average price of sunflower oil rose by 1.3% month-on-month to $1,465 per ton, its highest level since August 2022. Rapeseed oil increased by 2.2% to $1,303.9 per ton (its highest since November 2022), while soybean oil prices jumped by 15.6% to $1,481.97 per ton. Coconut oil prices also saw a 4.2% increase, reaching $2,360.3 per ton.
Analysts indicate that the upward trend for 2025 had already begun to materialize, with all major vegetable oils recording price gains compared to 2024. Sunflower oil showed the strongest increase, rising by an average of 20%, while palm oil rose by approximately 8% amid increasing global production and delays in expanding biodiesel mandates in Indonesia.
The current market environment indicates continued high volatility in the agricultural sector. Future price dynamics will depend on the stability of supplies via major maritime routes and on crop forecasts in major exporting countries such as Argentina, Brazil, and the Black Sea region. If tensions persist, experts do not rule out further price increases and new record highs for several years.
Source: zerno.avs