11 June, 2008 - Vegetable oil prices will likely remain above historic averages during 2008/09 as demand remains strong primarily due to surging growth in the developing world.
Prices for all vegetable oils have double or tripled over the last 18 months as supplies were restricted due to various production shortfalls and policy imposed – export impediments.
In 2008/09, increased availability of soy oil, sunflowerseed oil, and palm oil due to rebounding and growing production will help mitigate upward price pressure but likely will not be enough to push prices down to historic levels.
Oil importers, particularly China and India, will look toward palm oil to satisfy their booming import demand for vegetable oil in the short term and medium term as ending stocks of major soy oil exporters (Argentina, Brazil, and the United
States) are forecast down 2 percent from last year. Vegetable oil is a major source of fat in the developing world specifically in the least developed world where consumption of nutritional staples is limited.