An analyst from Hamburg's "Oil World" in Germany said that with high consumption, the final inventory of 17 vegetable oils and fats worldwide may fall to a four-year low.

The global consumption of major oils and fats is expected to grow at a rate of 7.4 million tons per year, which will lead to a four-year low of 33.8 million tons in inventory at the end of 2025/26.

With the upcoming record harvest of South American soybeans, global prices of soybeans and other oilseed products are facing enormous pressure. Oil World predicts that the global soybean ending inventory in 2025/26 may reach a new high of 124 to 125 million tons, with an estimated inventory to usage ratio of 29%. In order to balance supply and demand, it is necessary to increase soybean processing capacity.

Due to the increase in processing volume, global soybean meal production is expected to reach a record high of 287.1 million tons in 2025/26. Rapeseed meal and sunflower seed meal are expected to increase by about 700,000 tons year-on-year, respectively,

Oil World analysts said that the prices of major meal categories rose by 10% to 15% in November, but this trend is unsustainable due to the lack of support from basic supply and demand factors.

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