Palm oil uncertainties mean that prices continue to break historical records. The key factors to follow in 2022 that will mark the evolution of this oil are:
- Production in Indonesia and Malaysia
- Weather forecast
- Possible labour problems in Malaysia
- Discount versus soybean oil
- Fertilizer costs
- Import rates in India
- Mandates for use in biodiesel
In the case of sunflower, the uncertainty surrounding the conflict between Russia and Ukraine (between the two countries they export 80% of sunflower oil globally), combined with the high prices of other vegetable oils, are supporting its price. For the new harvest, a significant increase in planted area is expected.
Prices of all vegetable oils have risen sharply in the last month and a half, especially tropical fats, with palm kernel leading the way with a rise of more than 50% since mid-December. Its price has far exceeded that of coconut oil, which is unusual as palm kernel generally trades at a discount to coconut oil. Coconut and palm kernel oils, after a respite in prices during November, are now at their highest levels in recent years.