Lang
International reports indicate that global edible oil markets are still facing multiple shocks that have affected prices in recent months because of supply shortages.
The disruptions began with drought in several soybean-growing areas in Brazil, lower production and exports from the United States and Argentina, and palm oil export restrictions in Indonesia and Malaysia.
The ongoing Russia-Ukraine crisis has also affected Ukraine’s sunflower oil exports.
According to monitoring by Maal, global sunflower oil prices rose by 21% over the last three months — September, October, and November.
Prices increased from $850 per tonne in mid-August to $1,026 per tonne this week, up $176 per tonne.
Global palm oil prices also rose to $1,157 per tonne this week, compared with $880 per tonne in mid-August, an increase of 31%, or $277 per tonne.
FAO data showed that the vegetable oil price index rose to 152.7 points in October, up 7.3% from September and 27% year on year, reaching its highest level in two years.
The rise in the general vegetable oil price index was driven by higher prices of palm, soybean, sunflower, and rapeseed oils.
Global palm oil prices rose for the fifth consecutive month in October because of lower production in Indonesia and Malaysia and export restrictions, including higher export taxes.
Expected lower sunflower oil output because of the Russia-Ukraine crisis and reduced Canadian rapeseed production also contributed to higher prices.
Global soybean oil prices increased as well because of stronger demand amid limited supplies from Brazil, the United States, and Argentina.
In Saudi Arabia, data from the General Authority for Statistics showed a slight rise in average edible oil prices in the latest September report.
The price of Al Arabi vegetable frying oil rose to around SAR19.71 for 1.5 liters, compared with SAR19.51 in August, up 1%.
Afia corn oil rose to SAR24.93 for 1.5 liters, compared with SAR24.74 in August, up 0.7%.
Indonesia is the world’s largest exporter of crude and refined palm oil, accounting for around 50% of global exports.
The Indonesian government has approved increasing the palm oil blend in biofuel to 40% from 35%, starting in January 2025, while also studying a possible increase to 50%.
This comes alongside higher crude palm oil export taxes introduced in recent months.
Source: Maal Newspaper