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Monday, May 23, 2022
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Russian war “turns oil on its head”: lampante and refined at the price of virgin

The war in Ukraine, the main supplier of sunflower oil to the European Union, and decisions such as Indonesia’s decision to suspend palm oil exports or Turkey’s decision to ban olive oil exports, along with other negative factors for the vegetable oil trade, such as the droughts in South America and Canada, which also limited the supply of soybean and rapeseed oil respectively, have rocked the global vegetable oil market and of course this is all visible in Spain, the world’s leading olive oil producer, which accounts for 50 % of the total volume. A) Yes, wholesale market for this vegetable fat “turned inside out like a sock,” experts explain, to the point that prices for oils of lower quality, lampante and refined, They are “very close” to the price of virgins and extra virgins.. The situation is especially typical for Spain, a country where the difference in the price of these types of oil between producing countries is smaller. Lampante is currently quoted at 3,200 euros per tonne; updated on 3350; virgin on 3300 and extra virgin moves with some margins from 3350 to 3500 euros per ton.

“Good prices”, to explain from the main agricultural organizations in the sector, UPA, ASAJA, COAG, which offer the farmer a “good margin”, unthinkable a year ago. Olive oil sales in March, according to the latest available official data, were the highest of the current campaign, with 147,120 tons sold. The six-month campaign average is 130,890 tons. According to the Food Information and Control Agency of the Ministry of Agriculture, 785,890 tons have been sold since its inception. With 17,426 tons received in March, the cumulative production is 1,475,497 tons.

According to the latest poolred system data to which ASAJA-Jaén had access, from 25 April to 1 May, the price of extra virgin olive oil was 3,438 euros per ton, 3,273 euros per ton and 3,180 euros per ton. Operations registered 93 with a production volume of 6696 tons. As for the picual from Jaén, extra virgin was 3386, virgin 3264 and lampante 3243. At the same time, 32 operations were performed with an output of 2357 tons.

The six-month campaign average is 130,890 tons. Since its inception, 785,890 tons have been sold, according to Agencia de Food information and control of the Ministry of Agriculture. With 17,426 tons received in March, the cumulative production is 1,475,497 tons. Moreover, “having this data in hand, we can consider the campaign closed, with 125,000 tons of products in excess of what was measured at the beginning”. Thus, the total stocks of olive oil in Spain by the middle of the campaign are 1,215,980 tons, of which 895,980 tons are in oil mills; 285,509 in bottling plants and 34,490 in the communal heritage of Olivarero.

But it was war in Ukraine who completely changed the oil market after the campaign plant a sunflower in this country it is completely lost, and therefore in Spain we will lack from 400 to 500 thousand tons of sunflower oil. Faced with this dilemma, oil market operators and the agri-food industry find themselves in a difficult position. the need to look for alternatives to mitigate this supply gap. As a result, the prices of sunflower oil and its natural substitutes, olive pomace oil and refined olive oil, have skyrocketed both on supermarket shelves and in fields and oil mills.

Moreover, in recent weeks with the stabilization of prices for oil of the first and first cold pressing, this trend is intensifying and it is olive oil destined for refining that has pushed prices up by origin, as it is refined olive oil that is showing more buying interest from the packaging industry and the agri-food industry, although according to market operators “it seems that operations and volumes in point of departure slowed down in April.” On the one hand, the packaging industry is behaving very conservatively and cautiously, as large retailers also do not want to raise prices for the population, given drop in consumption due to inflation in February and March.

And the fact is that preliminary data for April shows a slight break in the sale of oil by origin, especially the first and first cold pressing. On the one hand, large industrial packaging companies have been enduring purchases with strong stocks for several weeks, and on the other, “speculative movement” Sources in the sector say that some oil mills and cooperatives “who still believe that there is room for price increases at the point of origin”, as one of the wholesale market operators told La Información: “I think the current prices are good both for producers and for bottling companies. , as the sale of any category of oil, from lampante to extra virgin, at a price above three euros gives a good profit to the farmer and bottler in order to be able to put olive oil on the shelf at fair and reasonable prices. Thus, “it would be bad if we fell”he says, “in the habitual and historical mistake in the oil market to store and store the oil in the oil mill to see if the price goes up a little more so I can sell it for more, and then, as aforementioned, it doesn’t happen, offer oil from blow up and provoke a new fall in prices.”

This is how the convulsive wholesale oil market in Spain is experiencing an unusual situation this year: lampante at a virgin price. In short, the olive oil market, which, in any case, is having a good time in Spain. Olive oil is trendy and this is demonstrated by figures similar to those just published by INE. (National Institute of Statistics): The area of ​​agricultural land used in Spain is 23.9 million hectares, with an increase of 0.7% over the past decade. Of these, 2,464,420 hectares, or 10.1% of the total, are olive groves, which increased by 14.4% compared to 2,153,727 ha in 2010..


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