Soybean oil prices in 2022 will grow by 4%

In 2022, soybean oil prices are projected to rise by almost 4% to $ 1,425 per tonne, driven by increased demand for biofuels. In 2021, the average annual price of soybean oil rose sharply, increasing 65% year-on-year to $ 1,385 per tonne. India remains the world’s largest importer of soybean oil, while Argentina is the world’s leading supplier.

Soybean oil price forecast for 2022

According to the October forecast of the World Bank, the average annual price of soybean oil will rise by almost 4% to $ 1,425 per tonne in 2022. The main driver of this growth will be the growing demand for biofuels, especially in Asia. In 2021, the average annual price of soybean oil soared 65% over the previous year, from $ 838 to $ 1,385 per tonne. The fastest rise in prices was recorded in the third quarter, fueled by weather-related disruptions to production in South America, strong demand in China and high freight rates.

Import of soybean oil

In 2020, purchases of soybean oil abroad increased by 7.5% to 13 million tonnes, increasing for the second consecutive year after three years of decline. In value terms, soybean oil imports have grown significantly to $ 10.3 billion (IndexBox estimate). India was the main importing country with purchases of around 3.7 million tonnes, accounting for 28% of global supplies. The second position in the ranking is occupied by China (963 thousand tons), followed by Algeria (670 thousand tons) and Bangladesh (666 thousand tons). All these countries together accounted for about 17% of total imports. Morocco (547 thousand tons), Mauritania (537 thousand tons), Peru (521 thousand tons), South Korea (390 thousand tons), Colombia (378 thousand tons), Venezuela (373 thousand tons), Egypt (243 thousand tons), Poland (229 thousand tons) and Nepal (215 thousand tons) lagged significantly behind the leaders. In value terms, India ($ 3 billion) is the largest market for soybean oil imports in the world, accounting for 29% of global imports. The second position in the ranking was taken by China ($ 725 million) with a share of 7% of the total value. It is followed by Algeria with a share of 4.6%.

Largest exporters of soybean oil

In 2020, Argentina was the main exporter of soybean oil (5.3 million tonnes), which accounted for 42% of total exports. It is closely followed by the United States (1238 thousand tons), Brazil (1110 thousand tons), Paraguay (631 thousand tons), the Netherlands (615 thousand tons) and Russia (611 thousand tons), together accounting for 33% world supplies. Spain (387 thousand tons), Bolivia (377 thousand tons), Ukraine (302 thousand tons), Turkey (208 thousand tons) and Germany (192 thousand tons) occupied relatively small shares in the total volume. In value terms, Argentina remains the largest supplier of soybean oil in the world ($ 3.7 billion), which accounts for 39% of world exports. The second position in the ranking was taken by the United States ($ 979 million), with a share of 10% of the total supply. They are followed by Brazil with a share of 8%.

Agribusiness

Tags: Bolivia, China, Germany, Peru, Turkey, Argentina, soybean oil, Colombia, Brazil, Bangladesh, Algeria, Netherlands, South Korea, Morocco, prices, Venezuela, Poland, Mauritania, Spain, Paraguay, Ukraine, India, Russia, USA