Soybean oil prices will increase by 4% in 2022 due to increased demand for biofuels
IndexBox just released a new report: ‘Global – Soybean Oil – Market Analysis, Forecast, Size, Trends and Outlook’. Here is a summary of the main findings of the report.
In 2022, soybean oil prices are expected to increase nearly 4% to $1,425 per ton, due to increased demand for biofuels. In 2021, the average annual price of soybean oil skyrocketed, rising 65% year-over-year to $1,385 per ton. India remains the largest importer of soybean oil in the world, while Argentina holds the position of the world’s largest supplier.
Soybean Oil Price Forecast 2022
According to the October forecast by the World Bank, the average annual price of soybean oil is expected to increase by almost 4% to reach $1,425 per ton in 2022. The growing demand for biofuels, particularly in Asia, will the main driver of this increase.
In 2021, the average annual price of soybean oil climbed 65% year-on-year, from $838 per ton to $1,385 per ton. The fastest price growth was in the third quarter, driven by weather-related production declines in South America, strong demand in China and high freight rates.
Imports of soybean oil
In 2020, overseas soybean oil purchases rose 7.5% to 13 million tons, up for the second year in a row after three years of decline. In terms of value, soybean oil imports increased significantly to $10.3 billion (IndexBox Estimates).
India was the main importing country with a purchase volume of around 3.7 million tonnes, which represented 28% of global supplies. China (963K tons) ranks second in the ranking, followed by Algeria (670K tons) and Bangladesh (666K tons). All these countries together accounted for nearly 17% of total imports. Morocco (547K tons), Mauritania (537K tons), Peru (521K tons), South Korea (390K tons), Colombia (378K tons), Venezuela (373K tons), Egypt (243K tons), Poland (229K tons) and Nepal (215K tonnes) followed far behind the leaders.
In terms of value, India ($3 billion) is the largest market for imported soybean oil in the world, accounting for 29% of global imports. The second position in the ranking was occupied by China (725 million dollars), with a share of 7% of the total value. It was followed by Algeria, with a share of 4.6%.
Top Soybean Oil Exporters
In 2020, Argentina (5.3 million tons) was the main exporter of soybean oil, constituting 42% of total exports. It was followed far behind by the United States (1,238,000 tons), Brazil (1,110,000 tons), Paraguay (631,000 tons), the Netherlands (615,000 tons) and Russia (611,000 tons). tonnes), together creating a 33% share of global shipments. Spain (387,000 tons), Bolivia (377,000 tons), Ukraine (302,000 tons), Turkey (208,000 tons) and Germany (192,000 tons) had relatively small shares of the total volume .
By value, Argentina ($3.7 billion) remains the world’s largest supplier of soybean oil, accounting for 39% of global exports. The second position in the ranking was occupied by the United States (979 million dollars), with a share of 10% of the total supplies. It was followed by Brazil, with an 8% share.
Source: IndexBox platform