• Why did global vegetable oil supply tighten before Russia invaded Ukraine?
  • Prior to the Russian invasion of Ukraine, global vegetable oil supplies had tightened due to a variety of factors. Drought in South America has caused a sharp reduction in soybean yields, particularly for its largest producer, Brazil.
  • How have export restrictions impacted the soybean oil market?
  • Export restrictions have also disrupted the soybean oil market. On March 13, Argentina restricted exports of soybean oil and meal, then altered course on March 31, permitting exports but raising export taxes on those products from 31% to 33%.
  • Are vegetable oil export shocks worse than cereals?
  • As a result, most countries are more exposed to vegetable oil export shocks compared to cereals, which are less traded and in which many countries are relatively self-sufficient.