The US Department of Agriculture (USDA) has projected a record high global vegetable oil production of 204M tonnes for 2018/19, with supplies of palm and soyabean oils seeing a particularly sharp increase, says Germany’s Union for the Promotion of Oil and Protein Plants (UFOP).
According to the USDA forecast, 2018/19 world vegetable oil production was forecast to rise more than 3% from 2017/2018, with palm, soyabean, rapeseed and sunflower oils accounting for around 87% of that figure.
Soyabean oil was expected to see the biggest growth at 5% as a result bumper harvests in Brazil and the USA this year.
Favourable growing conditions in Southeast Asia and surprisingly high yields at oil palm plantations were likely to lead to a 4.5% increase in palm oil production from 2017/18 to 72.8M tonnes.
Production of sunflower oil was expected to rise 4%, helped by a 6% increase in Ukrainian sunflower production. In contrast, the 28.1M tonnes of 2018/19 rapeseed oil output is projected to be 1% lower than in the 2017/18 marketing year. According to Agrarmarkt Informations-Gesellschaft mbH (AMI), this is the result of drought-induced disappointing rapeseed harvests in the EU and Australia this year.
UFOP said that as a result of the increase in vegetable oil supply, pressure on prices would persist in the international vegetable oil markets.