World statistical data

Global palm oil production, consumption & ending stocks (million tonnes) Mintec

Global palm oil prices – €/tonne Mintec

US tallow and grease prices – US$/tonne Mintec

Prices of selected oils (US$/tonne)

Mar 22 Apr 22 May 22 June 22 July 22 Aug 22 Soyabean 1,922.7 1,868.3 1,859.2 1,695.9 1,501.8 1,535.9 Crude palm 1,669.6 1,578.6 1,623.8 1,440.5 1,096.7 1,118.9 Palm olein 1,605.4 1,445.6 1,515.3 1,406.0 1,009.4 1,023.8 Coconut 2,180.4 2,008.8 1,698.3 1,645.5 1,462.9 1,367.3 Rapeseed 2,057.6 2,120.9 1,909.0 1,746.8 1,702.4 1,488.3 Sunflower 2,351.0 2,136.0 2,096.8 1,774.9 1,509.1 1,499.8 Palm kernel 2,320.0 1,977.3 1,724.8 1,474.1 1,249.1 1,255.7 Average 2,015.0 1,875.0 1,755.0 1,598.0 1,362.0 1,327.0 Index 478.0 444.0 421.0 379.0 323.0 314.0

STATISTICAL NEWS

Palm oil

The Mintec Benchmark Prices (MBP) for EU palm oil climbed by 13.9% month-on-month (m-o-m) and by 5.9% year-on-year (y-o-y) to €1,114/tonne on 9 September 2022. Despite high stock levels in Indonesia and Malaysia (the world’s top two palm oil producers and exporters), the m-o-m price rise was attributable to increased demand from top palm oil importers China and India.

However, the MBP has since declined from the elevated levels reached in first-half 2022 following Indonesia’s decision to end its three-week palm oil export ban on 23 May, due to a domestic supply glut. Many buyers have since turned to palm oil because of its relative cheapness compared to alternative vegetable oils.

According to the US Department of Agriculture (USDA), global palm oil production is expected to rise by 4.1% y-o-y to 79.2M tonnes in the 2022/23 marketing year. However, the Malaysian Palm Oil Association (MPOA) has reported that thousands of tonnes of fruits are being left to rot due to sustained labour shortages in plantations across the country. And despite COVID-19 related restriction of migrant workers being lifted in February 2022, it has been reported to Mintec that the arrival of workers is happening at a much slower pace than anticipated. This could result in global production falling lower than estimated by the USDA, due to supply shortfalls from Malaysia.

Tallow and grease

The average US tallow price remained flat m-o-m at US$1,830/tonne but was up by 17.7% y-o-y in August 2022.

The average US white grease price was also flat m-o-m but was up by 21.1% y-o-y at US$1,653/tonne in the same period.

Both prices reached a record high in June 2022 and while the US white grease price has since declined from its record high of US$1,786/tonne, the US tallow price has stayed stable since June.

In light of the food vs fuel debate amid the Russia-Ukraine war, there has been an increase in US consumption of tallow and grease for biodiesel production. According to market sources, US imports of both fats have reached record high levels in 2022, while US exports have seen a sharp reduction.

Consequently, the USA has become the world’s largest importer of tallow and grease due to rapidly growing domestic demand for both feedstocks for biodiesel production.

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