Since November 2022, vegetable oil prices in general have been drifting down from the highs recorded in the first half of 2022. The relationship between these vegetable oils in Europe has started to converge and trade within a tighter range.
Palm stocks have declined in Indonesia and Malaysia over the last three months. As a result, the price of palm oil has appreciated relative to sunflower, rapeseed and soybean oils, causing demand from India and other importing countries to shift from palm oil to seed oils.
On the other hand, the euro continues to appreciate against the dollar. Oil prices have risen sharply following the OPEC+ announcement of a production cut from May onwards.
While prices have seen a recent decline, the latest climate models from various agencies set the possibility of an El Niño phenomenon (a naturally occurring phenomenon characterised by the abnormal warming of sea surface temperature in the central and eastern equatorial Pacific) occurring around June this year. If this is the case, it is likely to have an upward effect on vegetable oil prices.
The below chart highlights the recent oil price movements:
Working alongside our trusted network of suppliers, Regency has secured exclusive, best-in-market fixed pricing on cooking oil purchases, as well as the most competitive pricing on returned oil for recycling.
In fact, following our recent price negotiations, Regency members have been able to save over 22.4% on their invoice prices.
With the possibility of prices rising from June onwards, we recommend reviewing your oil prices as soon as possible to benefit from lower fixed pricing. If you would like a member of our team to review your oil purchasing to identify and unlock cost savings, please get in touch.