Olive oil stocks in the world are at a historic low

According to the estimates of Oil World (Germany), the global carry-over stocks of olive oil in 2023/24 MY decreased to the historically low level of 0.77 mln tonnes. This situation is caused by the high demand and extremely low production in 2022/23 season – at 2.78 mln tonnes compared to 3.66 mln tonnes in 2021/22 MY. In particular, the key olive oil producer Spain decreased significantly to 0.77 (1.62) mln tonnes.

At the same time, in 2023/24 MY the oil production is expected to remain low and amount to 2.77 mln tonnes (including 0.9 mln tonnes in Spain). Thus, the total supply of olive oil in the season-2023/24 will further decrease to 3.54 mln tonnes (3.82 mln tonnes in the previous MY), while the global exports will further decline.

In general, analysts expect the export supply of olive oil in 2023/24 MY to remain rather limited, under the pressure of the fact that the governments of Morocco and Syria announced the ban on olive oil exports to reduce the high domestic prices. It is worth mentioning that in early August, Turkey also announced the ban on the export of the product.

Tags: stocks, olive oil