The oils and fats market has evolved into one of the most intricate commodity sectors to navigate. Unlike single-factor commodities, oils and fats procurement now requires understanding an interconnected web of biofuel regulations, deforestation compliance, geopolitical tensions, and climate disruptions, all happening simultaneously.

For procurement teams managing oils portfolios, this complexity means that strategies that worked for individual oil types in isolation no longer deliver predictable results. The market dynamics have fundamentally shifted, creating both significant challenges and opportunities for those who can adapt.

Download the Oils & Fats Buying Guide here.

The interconnected challenge: why oils & fats are different

1. Biofuel demand reshaping the landscape

The surge in HVO (Hydrotreated Vegetable Oil) production is creating unprecedented competition for feedstocks. Palm oil and soybean oil that traditionally flowed to food markets are increasingly diverted to biofuel production, creating supply shortages that ripple across the entire oils complex.

2. EUDR compliance changing sourcing strategies

The European Union Deforestation Regulation is fundamentally altering how companies source oils, particularly from Southeast Asia and Latin America. This isn’t just about compliance, it’s about completely rethinking supply chains and supplier relationships.

3. Regional disruptions with global impact

Shipping constraints in the Black Sea affect Ukrainian sunflower oil. Port disruptions in Argentina impact soybean oil exports. Weather patterns in Malaysia influence palm oil production. Each disruption cascades through interconnected global markets.

Why traditional approaches struggle with complexity

Most procurement strategies were designed for simpler market conditions. Current approaches often rely on:

  • Single-commodity focus that misses cross-market dynamics
  • Regional strategies that don’t account for global supply chain disruptions
  • Compliance-separate procurement that treats regulation as an afterthought rather than a market driver
  • Seasonal patterns that climate change and geopolitical events have disrupted

In this complex environment, procurement teams need strategies that can handle multiple variables simultaneously rather than treating each oil as a separate decision.

New approaches for complex markets

Leading procurement teams are developing new capabilities to handle this complexity. They’re moving beyond traditional single-commodity strategies to embrace tools and approaches that can process multiple market variables simultaneously.

These teams are using advanced forecasting that accounts for cross-commodity relationships, regulatory impacts, and geopolitical developments, all factors that influence oils pricing in today’s interconnected markets.

Introducing the oils & fats buying guide for 2025

To help procurement teams navigate this complex environment, we’ve created a comprehensive Oils & Fats Buying Guide that addresses the specific challenges of managing interconnected commodity markets.

This guide provides:

  • Market snapshots and price trends across palm oil, sunflower oil, and soybean oil with regional breakdowns
  • Cross-commodity analysis showing how different oils markets influence each other
  • Regulatory impact assessments for EUDR and biofuel mandates
  • AI-powered forecasting insights with accuracy metrics for each major oil type
  • Timing strategies for navigating seasonal patterns disrupted by climate and geopolitical factors

The guide recognizes that oils & fats procurement isn’t about managing individual commodities, it’s about understanding and navigating a complex, interconnected system.

Download the Oils & Fats Buying Guide → https://vespertool.com/downloads/download-oils-and-fats-buying-guide/