Soybean oil shines amidst disrupted global vegetable oil supply chains
According to Mac Marshall, vice president, market intelligence, for the United Soybean Board (USB) and the U.S. Soybean Export Council (USSEC), the convergence of increasing vegetable oil demand and supply chain disruptions will continue to cause shifts in pricing for different oils, making it important for buyers to know the impact of events and oilseed growing conditions as they relate to supply and demand.
He says, for example, drought in Canada during the 2021 growing season cut that nation's canola output. COVID-19 restrictions on cross-border workforce deployment that are starting to ease in places, like Malaysia, and an Indonesian ban on that nation’s exports continue to affect southeast Asian palm oil production and market availability. And the war in Ukraine is disrupting both sunflower production and the movement of the crop and oil to the global market through normal Black Sea shipping terminals.