US Palm Oil Exports Up
The December USDA report highlights reduced global palm oil production due to wetter conditions in Malaysia and Indonesia, raising palm oil prices above soybean oil. This shift boosts U.S. palm oil exports to fill the supply gap. Historically, soybean oil had a price premium, but U.S. biofuel industry growth now retains more soybean oil domestically.
According to the December USDA, world agricultural supply and demand estimates report, exports for US and Brazilian palm oil were higher, and that’s due to a decrease in world palm oil production. USDA Agricultural Outlook Board Chairman, Mark Jekanowski.
“Reduction in palm oil supplies reflecting these wetter conditions in both Malaysia and Indonesia, where most of the world’s palm oil is produced, palm oil prices have risen above soybean oil prices, and that has been pulling more US palm oil into global markets to fill some of that gap left by the tighter palm oil supplies. Palm oil is also a direct competitor to soybean oil and other oil seeds in the global market. Which is why the world board tracks palm oil production and supplies, historically, soybean oil sold at a price premium to palm oil with the expansion of the US biofuel industry that has been keeping a lot more of the US soybean oil in the US.”
“Once again, that was USDA World Outlook Board Chairman Mark Jekanowski, palm oil is an edible vegetable oil that is derived from the fruit of oil palms. It is used in food manufacturing, beauty products, and also is used as a bio fuel. And I’ll leave you with this here. Today, the 2025 commodity classic America’s largest farmer led agricultural and education experience will be held March 2 through March 4 in downtown Denver for the line on agriculture report. I’m Lorrie Boyer.
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Source : AG Info
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