After a few weeks full of rapid price movement and a lot of uncertainty, it seems like the biggest price jumps are behind us. Regarding the overall direction of the vegetable oil markets is however still a lot of uncertainty, especially in the short term.
Last weeks have shown that the global markets for vegetable oils are really sensitive to news and sentiment. And with vegetable oil prices under pressure due to crude oil prices dropping at the moment, the markets are looking to keep following news and sentiment in the near future as well.
Throughout this and last week, several large Chinese cities announced temporary lockdowns to battle Omicron. Which has caused some uncertainty regarding the demand for fuels from large Chinese cities, pressuring the price of crude oil around the world.
Most comforting of all, we hear signs of progressing peace talks between Ukraine and Russia. This seems to lower the amount of fear within most markets, similar to the price levels which have seen some pressure throughout this and last week.
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