March 14

3/14 - There are 4 (major) traded edible oils. Looking at just exports for the 2021/22 crop year, palm oil is king with a 56% share, sunflower seed oil is 2nd at 15%, soybean oil is 3rd at 14%, and rapeseed (canola) comprises 6%. Ukraine accounts for 80% of the world’s sun-oil trade, which works out to roughly 12% of all globally traded veg-oils. That 12% is lost for the foreseeable future. Palm oil is also in short supply. In a bid to stem domestic inflation, Indonesia, the world’s largest palm oil exporter, said that its producers must retain 20% of planned exports for domestic use. New biofuel initiatives mean that crude oil can (and will) drag soy-oil prices upward. As a result of these converging forces, soy-oil futures set another record high of $.8218 per pound on Friday (3/11). Soy-oil averaged $.5815 in 2021, following a 6-year stretch (2015-2020) of averaging just $.3117/lb.