Economics

Highest Ever Vegetable Oil Prices Risk Even Faster Inflation

  • Oilseed supplies hurt by South America dryness, Asia flooding
  • Paris rapeseed futures have nearly doubled in the past year
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More bad weather for the world’s oilseed growers is pushing rapeseed and canola prices to fresh records and adding to food-inflation worries.

Futures have been on a tear for a while, after last year’s harvests in Canada and Europe were plagued by scorching drought and planting cutbacks, cutting global rapeseed stockpiles to a four-year low. Now, worries are mounting about supplies of rival vegetable oils, with hot and dry weatherBloomberg Terminal hurting South American soybean prospects and floodingBloomberg Terminal hitting palm oil farms in Malaysia.