On world markets there is a shortage of vegetable oils

World markets are showing concern over the decreasing supply of vegetable oils. It is expected that in the current quarter, shipments of palm oil will be reduced by 3.1 million tons compared to last year and total shipments of eight major vegetable oils 4.4 million.

a Global shortage of vegetable oils will lead to a reduction in world reserves during January-March, and the restoration of growth will be possible only in may-June 2017.

at present, the domestic palm oil stocks in Malaysia are very low, which can only provide four weeks of consumption. In comparison with indicators of previous years this is a very small number, especially when you consider that over the next four months production volumes due to seasonal factors will be reduced. Partially the amount of palm oil will be offset by Indonesia, but shortages will still be felt until March of next year.

the Lack of supply continues to support price growth in the main markets of vegetable oils. Most actively growing the price of palm oil, similar dynamics is shown for soybean and rapeseed oil.

At the same time, sunflower oil fell as at the end of last week and the previous year. The main reason is the record harvest of sunflower in Ukraine and Russia. However, the current price trend in the market of sunflower oil may be short-lived. Despite the heavy sentences, the demand for this oil on the part of importing countries is increasing. It can neutralize the excess amounts of oil and reduce the discount between the prices of sunflower and soybean/rapeseed oils in the next 3 months.