Olive oil

In the medium term, prices on the vegetable oil market will be stabilized by high inventories


The significant price fluctuations on the world market for vegetable oils were caused by a number of world events that affected the world economy and caused inflation, which also has a significant impact on prices: from the coronavirus pandemic to the war in Ukraine to the export ban in Indonesia. Matt Ammermann, Vice President of StoneX Group, spoke about this during his speech at the online conference "Sunflower Seed And Oil: New Reality On Global Market".

I would like to remind you that in the current year on the world market of vegetable oils there are extremely important events that have a significant impact on the market and price formation. Thus, the demand for vegetable oil has been formed for several years, led by the coronavirus pandemic and the development of the situation in the People's Republic of China. In addition, since the outbreak of war in Ukraine, vegetable oil prices have risen amid falling supplies of Ukrainian sunflower oil and after Indonesia imposed a ban on palm oil exports.

Matt Ammerman

Vice President of StoneX Group

In the medium term, however, there should be no concern about the number of vegetable oils as stocks of palm oils, Soybean and Sunflowers will be sufficient to meet consumer demand in both the nutrition segment and the Biosecure fuel segment.

Due to the unique market situation of sunflower and vegetable oils due to the war in Ukraine, we can observe a significant increase in demand for sunflower seeds. At the same time, despite the obvious planned reduction in the production of oilseeds in the country in 2022/23, the production of this crop remains one of the most profitable for farmers, which, apart from high demand, will in the future be supported by easier logistics and export. Finally, there is hope that European partners will help improve the delivery of Ukrainian products. In addition, Ukrainian farmers will actively transplant the sunflower because of possible problems with the storage of the culture.

Matt Ammerman

Vice President of StoneX Group

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