As mentioned in previous highlights, the global vegetable oil markets currently are highly susceptive to news and sentiment. Since there currently is a lot of news coming from various sources as well, it has become difficult to get your head around the true sentiment and outlook of the markets. Where we have faced a lot of bullish news over the last few months in the shape of drought, additional export bans, and above all, the Russian invasion of Ukraine. News currently seems to be both bearish and bullish, indicating the complexity of the global markets for most vegetable oils.
Increased soybean planting, favorable weather for palm production and lower crude oil prices have shown that markets also respond to bearish signals. Which has caused prices to decrease over the last few weeks as well. But below the news-driven markets, the underlying supply and demand are still looking tight in most markets for liquid oils. Especially since most oilseed crops have seen major supply disruptions in the shape of lower production, lower quality of crops, or logistical problems.
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