The global market is poised for a steady increase in demand for vegetable oils, coupled with anticipated declines in production and stock levels. Thomas Mielke, Editor-in-Chief and CEO of Oil World (Germany), stated at the XXII International "Oil and Oilseed Industry-2024" Conference in Kyiv that the global supply of 17 primary vegetable oils is expected to grow by only 1.6 million tons in the 2024/25 marketing year, a sharp decrease from the previous year’s 8.8 million tons.

Rising Demand Over the Years

According to Mielke, demand for vegetable oils has shown consistent growth, with annual increases of 4.1 million tons in the 2003/04 season, 7.1 million tons in 2013/14, and 5.9 million tons in 2023/24. Both consumers and producers are preparing for potential price hikes due to these trends.

Dependency on Key Oils and Price Increases

Currently, 20% of global vegetable oil consumption supports the energy sector, particularly biodiesel production, which heavily depends on palm, soybean, canola, and sunflower oils. Mielke highlighted a significant price increase in palm oil, which has risen from $530 to $1,900 per ton over the past four years. In the last five weeks alone, prices for the four main vegetable oils have increased by $110-180 per ton, reflecting a 10-18% rise.

Global Stock Forecast for 2024/25

According to company projections, global stocks for 17 types of vegetable oils are expected to reach 265.6 million tons in 2024/25, with palm oil accounting for 31.5%, soybean oil 24.9%, canola oil 11.6%, and sunflower oil 8.5%.





Click here to reach our trading platfrom CMBroker