A new report from the USDA (United States Department of Agriculture) forecasts that international vegetable oil commodity production can hit a record high value at the end of the 2018/19 harvest season.
The vegetable oil production can increase to 204 million tons, a three percent boost when compared to the production in the past year, according to USDA information.
An unexpected high yield of palm oil from Southeast Asia, a bumper crop production of soybeans in Brazil and the US, and a powerful year for Ukraine sunflower cultivators have all contributed to the record high production of vegetable oil.
However, not all crops within the vegetable oil sector had a decent year. The USDA predicts that oilseed production can slightly decrease because of an unsatisfying canola harvest within the European Union and Australia and a nasty year for peanuts in both the US and the Asian nation.
Even so, some analysts are upset that this surplus of oil can still cut down international vegetable oil commodity prices which a number of what’s made can have nowhere to go. Crude edible oil costs have already fallen by 11 to 25 percent, in part, because of excess supply and decreasing demand in larger markets, like India and China.
The German Union for the Promotion of Oilseed and Protein Plants (UFOP, for its German initials) said in an announcement that the weight on costs will hold on in the international vegetable oil markets in the wake of this pattern in supply.
As indicated by Mark Ash and Mariana Mathias, two individuals from the USDA’s Economic Research Service, Chinese demand is presently being met by Brazilian and Argentine vegetable oil makers, according to Olive Oil Times.
The 2018/19 international vegetable oil commodity production will most likely ascent more than 3 percent from the earlier year to a record level of nearing 204 million tonnes, as indicated by the USDA figure. Soybean, palm, rapeseed and sunflower oil represent around 87 percent of that figure, as reported on Bio-based News.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]