For the Quarter Ending March 2022
In the first quarter of 2022, the corn oil market witnessed an upsurge in the North American region. The prices of feedstock corn surged gradually, owning to the Russia-Ukraine war crisis, and associated suspension at Ukraine ports, which further disrupted the global food supply chain. Resurfaced covid affected the production rate leading to increased operating cost. Soaring fertilizer prices with maximum cost support consequently escalated the prices of the corn crop. Being the major exporter of corn oil and with increasing demand overseas, the corn oil market witnessed a supply-demand gap as demand outpaced the supply side. Towards the end of Q1 2022, the overall price trajectory of corn oil was recorded to be on the higher side.
In the Asia Pacific region, the corn oil market experienced an upward trend. In the first half of Q1 2022, the prices declined owing to reduction in import duty. Later, at the commencement of second half, the prices rose again due to the Russia Ukraine conflict. The geopolitical tension negatively affected the trade market, leading to a supply crunch and price inclination. Due to the conflict between Russia and Ukraine, the countries shifted to alternative oil from conventional oil, putting pressure on vegetable oil like corn oil. With supply chain interruption and increased freight charges, raw material prices increased in the first quarter of 2022 providing cost support to the upstream industries.
In the first quarter of 2022, the market prices of corn oil increased following the price trend of other edible oil. The prices of corn surged sharply with the near-total absence of Ukrainian grain anticipated supply shock to global consumers. Ukraine, the world’s vital growing region for the trading of corn oil, faced stifled supply due to a war crisis leading to a production halt in Ukraine, labor scarcity, and infrastructural damage. Also, the resurgence of the pandemic resulted in disruption of prolonged export halt. This war crisis resulted in increased pressure on alternative oil with increasing demand in the domestic and overseas markets resulting in price increments.