OVERVIEW
The edible oils market is on a weekly downward trend from recent highs – except for olive oil, which is having a tough time. It’s important to note that despite a downward weekly trend, prices are still much higher YoY. A lot of these increased prices will trickle through to production cost over the coming months.
RAPESEED OIL
- The Euronext rapeseed price RSSP declined by 11.2% MoM to EUR 743/MT in June.
- This decline is attributed to expectations of improved domestic supply for the 2022/23 MY (Jul ’22-Jun ’23) and expectations of a recovery for global crop for the 2022/23 MY.
- In addition, EU rapeseed oil RSOR fell by 6.2% MoM to EUR 1,670/MT in June, on the back of reduced demand amid an improvement in global supply conditions of alternative oils (palm oil and sunflower oil).
- This was due to negative margins for producing the biodiesel FAME (Fatty Acid Methyl Ester) from rapeseed oil causing biodiesel players to pull back from the market.
- The harvest is underway, so the next month should see offers being made for new crop.
OLIVE OIL
- Benchmark Prices for Olive Oil Extra Virgin EXW Andalusia at €3.65/kg, up €0.10/kg from the previous assessment.
- Trading in the Andalusian olive oil market picked up as weather concerns for the new crop caused market players to seek to purchase current supplies.
- A number of indications were heard higher than the previous assessment moving the assessment price upward as a result.
- €3.65/kg is very high, the same was thought last July at €2.91/kg, compared to the 2020 prices which were at €1.91/kg.