24 October, 2019
RALEIGH, North Carolina, October 24, 2019 - The global market for soybean oil is currently growing at a CAGR of 3.5 percent, according to Beroe Inc., a procurement intelligence firm. Soybean oil is the second most consumed vegetable oil in the world, with 82 percent of the soybean produced globally used for the purpose of crushing, out of which 18 percent of oil and 82 percent meal are obtained.
China is the largest producer of soybean oil, accounting for 27 percent of the global production, followed by the US for 19 percent, Argentina for 15 percent, Brazil for 15 percent and the EU for 5 percent. The key consumers of soybean oil are China for 28 percent, the US for 19 percent, Brazil for 13 percent, India for 9 percent and Argentina for 5 percent. China consumes almost approximately 99 percent of the domestic production.
https://www.beroeinc.com/category-intelligence/soybean-oil-market/
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Soybean oil is the second most consumed vegetable oil in the world, driven by the US and the Asian demand. Soybean oil supply witnessed a consecutive increase for the last three years, due to increased soybean supply and tightened supply in the other vegetable oil market, mainly the rapeseed oil market. Recovery in the biodiesel demand has also supported the real estate market. along with suitable weather conditions in the main soybean growing regions.
The soybean oil industry is driven by crush margins. High crush margins are likely to support the increase in crushing of soybeans, which, in turn, lead to high supply of soybean oil and may weigh on prices. Higher crush margins are expected to increase the oil supply, and in turn, increase the soybean prices. Producers are expected to balance their production, based on crush margins.
The research methodology adopted for the report included:
Soybean oil prices and contract structures are fixed by the suppliers using CBOT future and adding the basis & freight costs. The basis is the difference between cash and future prices. Profit margin set by the buyers depends on time of buying & selling and also on soybean prices. The soybeans supply scenario and crush margins play a major role in driving the prices of soy oil as soybean seeds are responsible for 65 percent of the total costs.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com
Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com
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