Global Commodity Surge Likely to Drive Up Cooking Oil Prices in Morocco

The global economy is facing a surge in commodity prices, sometimes reaching peaks. Industrialists who depend on these imports are in turn passing on this increase to selling prices. A new increase is therefore imminent.

This is the case for oilseeds, whose prices have already soared at the beginning of February, due to low production in Brazil and Argentina, the world’s main producers, according to the USDA’s Wasde report.

According to the document, the cost of palm oil production increased by more than 30% last year. At the end of January, the price of this commodity reached a record high of 5,639 ringgits (1,347 dollars). This is the global benchmark price reached by the ton of crude palm oil on the Bursa Malaysia Derivatives Exchange on Monday, January 31.

This increase continued in February, during which the price of a ton of rapeseed gained 4.25 euros to 681.25 euros per ton on the May maturity and 2.25 euros to 608.5 euros per ton on the August maturity, for a little more than 1,500 lots traded.

Consequently, the production costs of cooking oils in Morocco should record an increase, as local production is composed of 98% imported raw materials, a situation that should be reflected in the selling price of cooking oils, which will experience an increase in the coming days in the Kingdom.