Soy processing grows substantially, says UFOP

In Germany, UFOP reports that global soybean oil production rises approximately 5 per cent, based on the 2015/16 record supply of feedstock. By contrast, production of rapeseed oil declines from the previous year. Smaller and, consequently, more expensive feedstock supply increases competition with other oils. The nosedive of mineral oil prices has put a heavy damper on demand for vegetable oils. Biodiesel based on vegetable oils can currently hardly compete with mineral diesel, Agrarmarkt Informations-Gesellschaft mbH (AMI) reports. But there is hope. OPEC expects crude oil prices to surge again over the next few years in the wake of rising costs.

Nevertheless, 2015/16 global output of vegetable oils rises by just under 2 per cent, to 179 million tonnes. At the same time, soybean oil production increasingly converges with that of palm oil, the world’s leading vegetable oil. Production of rapeseed oil falls for the first time in nine years, but continues to exceed the long-term mean. Production of sunflower oil stagnates.