The uncertainty in the vegetable oil market continues

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The uncertainty in the vegetable oil market continues

Volatility in the vegetable oil market is increasing as the war in Ukraine continues.

Gregg Doud, chief economist at Aimpoint Research, tells Brownfield that the world actually trades more sunflower oil than soybean oil, and much of it comes from the Black Sea region.

“We have already seen shortages of cooking oil in the European Union and countries in Europe because they cannot operate the oilseeds processing plants in Ukraine and it is logistically difficult to get anything out there even if you could process it.”

Doud also says that Indonesia, the world’s largest supplier of palm oil, has announced that it will freeze palm oil exports for at least a few months to minimize domestic shortages and higher prices.

“This whole situation has had a tremendous impact on the vegetable oil market around the world.”

He says this combination of factors has caused US soybean oil futures to rise as much as 90 cents a pound, compared to the normal 20-30 cents.

Click here to watch the full video interview with Doud on the impact of the war in Ukraine on global agricultural trade.