No one can deny that recent activity in the edible oils market has been crazy! We have gone from feast to famine in terms of supply and of course, prices.
The world of agriculture continues to evolve and the same is true of edible oils markets. The old school game has new rules! Soybean oil, an essential ingredient in food manufacturing, has become critical to the energy sector and biofuels. Crush and refining capacities for soybean and canola oil are grinding upward to meet this growing demand. On the global stage, oil production and increasing consumption is making developments in South America and Asia equally important as what is happening in the U.S. Users of tropical oils including palm are faced with issues of both supply and transportation, both of which can be impactful to prices.
Throw in a pandemic, ongoing supply limitations, and volatility and we have the perfect battery of uncomfortable and unfamiliar factors—new and old—that are meaningful to all market participants in food service, manufacturing, co-packing, and processing.