For the Quarter Ending March 2022
In North America, the prices of soybean fluctuated in the first half of the Q1 2022 followed by sharp surge in the market prices late January onwards. Due to excess heat and dryness in the late December and early January the harvest was poor following crop rescues from recent rains. During the onset of second half, the prices went up due to Russia Ukraine invasion leading to port congestion and suspended transportation. Adding to this, Indonesian government sanction ban on the export of palm oil increased pressure on the alternative oil manufactures with increasing demand. Increase in prices affected the soybean oil market in North American market as it is a major exporter to USA. Towards the end of the quarter, the prices of soybean oil were observed to be USD 1489/ton.
In the Asia Pacific region, the soybean oil prices fluctuated drastically in Q1 2022. In the first half of Q1, soybean oil prices were on the lower side due to sufficient supply in the domestic market. In major exporting countries of soybean oil, the productivity of the feedstock soybean was surplus in the previous quarter, contributing to a fall in its prices globally and typically export volumes positively as the USA is the major exporter of soybean oil to India. Also, the prices of the downstream biodiesel market were running low. At the onset of the second half, the prices of the feedstock soybean increased due to prolonged heat stress and below-average rainfall. The Russian Ukraine war aggravated higher prices by disrupting the trade routes and hiking up freight charges amid the climate crisis. Towards the end of the quarter, the prices of soybean oil were observed to be USD 1751/ton Ex-Qingdao in China.
In the European region, the soybean oil prices increased gradually in January. During the outset of Q1 2022, the prices fluctuated due to poor harvest owing to severe dryness and high temperature, but recent rains rescued the feedstock soybean crop from draught damage. Over the top, the Russian Ukraine invasion surged the prices globally due to increased freight charges, suspended transportation, and route disruption. Later in the month of March, the Indonesian government-imposed ban on the export of palm oil, sending big importers like India to scramble for alternatives like Soybean oil, which setting down pressure on the soybean oil manufacturers leading to price hike. Towards the end of the quarter, the prices of soybean oil were observed to be USD 1489/ton in Ukraine.