Soybean Oil Current Global Market Size is 57 Million MT, Says Beroe Inc

24 October, 2019

Soybean Oil Current Global Market Size is 57 Million MT, Says Beroe Inc
PR Newswire

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 soybean oil demand 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.

Key Findings:

  • Soybean is planted during June and July, while harvest usually begins around September. The climate, planting, and harvesting of soybean, soybean crushing margins influence the price trend of soybean oil.
  • Usually, contracts are for three months, and the best months to lock in soybean oil prices are April–June, during the planting season, as the prices surge during this period
  • El Nino weather condition favors major soybean producing regions, such as the US and South America, due to good rainfall and better yields. 
  • Buyers of soybean oil are the food companies, biodiesel manufacturers, and animal feed companies. They have less power in the commodity pricing compared to the suppliers. Suppliers have higher negotiation power than the buyers, as they are major producers.
  • The new and elite germplasm in Roundup Ready 2 Xtend soybeans can provide growers with outstanding performance in their efforts to produce the best crop possible. 
  • Soybean oil can be easily substituted by palm oil and other vegetable oils. Substitution is planned, based on the price spread between palm oil and soybean oil. 

The research methodology adopted for the report included:

  • Experts with twenty years of domain experience
  • Interaction with buyers
  • Inputs from supply chain partners

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:

Market Analysis:

  • Value Chain Analysis
  • Global Market Outlook
    • Current Market Size 
    • Demand–Supply Trends and Forecast
    • Key End-use Industries
    • Trade Dynamics
  • Regional Market Outlook (China, US, Argentina, and Brazil)
    • Current Market Size 
    • Demand–Supply Trends and Forecast
    • Key End-use Industries 
    • Trade Dynamics

Industry Analysis:

  • Industry Outlook
    • Drivers and Constraints for the Industry
    • Innovations
    • Porter’s Five Forces Analysis

Supplier Analysis:

  • Price Analysis (US, Argentina, and Brazil)
    • Price Forecast for Soybean Oil
  • Profiling of Major Suppliers
    • Archer-Daniels-Midland Co.
    • Bunge Limited
    • Cargill Inc.
    • Louis Dreyfus Company
    • Wilmar International Ltd

Cost and Price Analysis:

  • Procurement Insights for Soybean Oil
    • Sourcing Months
    • Sourcing Regions
    • Contract Structures 

About Beroe Inc.:

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