Global market price of oilseeds oil expected to remain strong
07-Nov-2024 04:05 PM
Chicago. A leading industry analyst says that in view of the increasing demand from importing countries, the global market price of oilseeds oil may remain high and strong in the coming times. According to the editor of the world famous newsletter on oilseeds oil - Oil World, in the marketing year 2024-25, producers and buyers of oilseeds will have to be ready to face higher prices.
The main reason for this is the continuation of the increase in demand for vegetable oils globally. During the recently concluded marketing season, an increase of 59 lakh tonnes was recorded in the global demand for edible oils.
During the marketing year 2024-25, the global supply (availability) of 17 major varieties of vegetable oils and fats is expected to increase by 16 lakh tonnes, while its demand will increase much more than this.
The price of vegetable oils, led by palm oil, is already maintaining a high level. According to analysts, in the last five weeks alone, i.e. till October 24, 2024, prices of four major varieties of edible oil have registered a sharp increase of 110 to 180 dollars per tonne or 10 to 18 percent.
Demand for vegetable oils is expected to remain strong during the coming months. Due to the share of the energy sector in the gross global consumption of these edible oils and fats, dependence on the consumption of palm oil,
soybean oil, rapeseed / canola oil and sunflower oil is expected to increase in the coming years and if there is no expected increase in its production, then there may be a natural up-down environment in the prices.
The price of canola in Canada is largely affected by the fluctuations in the prices of US soybean oil. On November 5,
the futures price of soybean oil for near-term positions on the Chicago Exchange was recorded at around 45 cents per pound,
which was 16 percent higher than the low futures price of August 16. In fact, at that time, the US Department of Agriculture (USDA) had estimated that soybean production in America would increase to a new record level during the 2024-25 season.