UFOP Chart of the week (46/2021)

Global production of vegetable oils continues to increase in the 2021/22 crop year to reach new record highs. An expected decline in rapeseed oil output can be more than offset by production increases in palm, sunflower and soybean oil.   

According to the recent USDA outlook, 2021/22 global production of vegetable oils will amount to 214.8 million tonnes. This would be an 8.21 million tonne rise compared to 2020/21. In other words, production will presumably fully cover demand of 211.8 million tonnes also in the current crop year.

According to investigations conducted by the Agrarmarkt Informations-Gesellschaft (mbH), palm oil is set to remain the world’s most important vegetable oil in terms of production and consumption, with output estimated at 76.5 million tonnes. This translates to a 3.6 million tonne rise over 2020/21. In other words, palm oil accounts for just less than 36 per cent of total vegetable oil production. Indonesia remains the largest palm oil producer with an output of 44.5 million tonnes, followed by Malaysia with 19.7 million tonnes and Thailand with 3.1 million tonnes.

Production of soybean oil is expected to grow 4 per cent to 61.7 million tonnes based on larger harvests and could hit a new record. China remains the most important producer with production amounting to 17.6 million tonnes, whereas the USA ranks second with 11.6 million tonnes. Production of sunflower oil is expected to climb as much as 14 per cent to 21.8 million tonnes in 2021/22 due to larger harvests in Eastern Europe and the EU-27.  On the other hand, the USDA has projected a 6 per cent decline in global rapeseed oil production to 27.4 million tonnes based on inadequate rapeseed supply. 

The Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP) expects the persistently high prices for sunflower oil to boost the expansion of sunflower area for the 2022 sowing campaign.

Source

UFOP, press release, 2021-11-15.

Supplier

Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP)
US Department of Agriculture (USDA)

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