Vegetable Oils: Palm, Sunflower and Coconut, Olive

Written by Atlante | Dec 18, 2022 10:03:05 PM

See what’s on the horizon thanks to Atlante’s commodity market performance insights for UK buyers and beyond.

At Atlante, we recognise the importance of providing up-to-date performance data for each of the main commodity markets. That’s why we offer snapshots and explainers that help to keep buyers informed.

2022 has been a rather turbulent year, with both record-breaking sales in UK supermarkets and grocery price inflation at a record high. So where do the main food commodities stand, and where are they headed?

Fast erosion of Indonesian palm oil stocks

There was a sudden drop in prices from March to a low at the end of September, now prices of palm oil seem to be in the rebound phase.

Outlook: The market remains well supplied and with good stock levels. Prices are expected to remain at slightly tighter levels between now and next summer due to an element of seasonality and the expected resumption of imports from China.

For sunflower oil there is a decent supply for the European market due to abundant seed imports from Ukraine.

Outlook: for sunflower oil is strong as there aren't high risks of significant price increases but this market is very much linked to what happens in the Black Sea area.

For coconut oil there might be a possible drop in production in 22/23 as the stress of the abundant yields of the previous campaign on the palm trees.

Outlook: for coconut oil is that the quotations for this will rise in 2023.

For olive oil European production declined sharply due to the simultaneous off-year in Spain, Italy and Portugal.

The outlook is positive for olive oil however the weather remains a strong variable due to low water reserves in the soil.

Watch this space for more updates on each of the main commodity markets- or get ahead by downloading our full commodities summary here.

Photo by Kai Dahms on Unsplash

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