The oils and fats industry experienced significant volatility and divergence across product categories in 2024, with sustainable sourcing requirements increasingly influencing market dynamics alongside traditional supply and demand factors.
Palm oil markets saw dramatic gains, with prices surging from 800 to 1056 USD/MT, primarily driven by production shortfalls in Indonesia where output through November lagged 1.847 MMT behind the previous year. While Malaysian production improved marginally, their combined shortfall created significant market tightness, amplified by growing biodiesel mandates in Indonesia.
Soybean oil markets showed contrasting regional trends. U.S. prices declined significantly due to increased foreign feedstock imports and ample domestic supply, while Argentine markets followed palm oil’s upward trajectory. Market uncertainty was heightened by biofuel policy changes and trade dynamics with China.
The lauric oil sector saw perhaps the most dramatic shifts, with coconut oil prices doubling amid strong European demand driven by EUDR considerations. This surge encouraged increased palm kernel oil exports from Malaysia and Indonesia, though prices remained elevated due to overall market tightness.
European olive oil markets provided a rare bright spot with prices decreasing on improved harvest conditions, while rapeseed oil showed initial strength but recently corrected despite tight global balances. Sunflower oil experienced significant gains due to limited farmer selling despite adequate crop levels.
In 2025 the industry faces a transformative year ahead as the EUDR implementation approaches, potentially reshaping traditional trade flows and sourcing patterns. Palm oil availability remains a key concern, while growing biofuel mandates globally could create additional demand pressure. Manufacturers will need to balance traditional supply considerations with increasing sustainability requirements, likely leading to continued price premiums for compliant materials.
What’s inside this report
For a deeper dive into the trends that defined 2024 and the forces shaping 2025, our full report provides detailed insights into:
- Palm Oil
- Coconut Oil
- Palm Kernel Oil
- Olive Oil
- Soybean Oil
- Rapeseed Oil
- Sunflower Oil
- Used Cooking Oil (UCO)
Each section offers comprehensive data and analysis, helping you navigate the complexities of the dairy market and make informed decisions for the year ahead.
Download the full report now to stay ahead of the curve and uncover actionable insights for 2025: https://vespertool.com/downloads/downloads-eoy-report-oils-fats-2024/