Insights

Europe’s Heat Wave Could Crimp the Olive Oil Supply

For more crisp and insightful business and economic news, subscribe to
The Daily Upside newsletter.
It’s completely free and we guarantee you’ll learn something new every day.

It’s a pressing matter: a chef’s salad of European crises is about to send the price of oil skyrocketing once more. Olive oil, that is.

Olive crops are getting scorched in the continent’s unrelenting heat wave, particularly in Spain, the world’s largest olive oil producer. Either prepare to cut back on pasta Aglio e Olio or steel your stomach for –blech – grapeseed oil alternatives, because every home cook’s favorite fatty liquid is about to get a lot more expensive.

Inferno Pricing

Europe is facing its worst hot spell in generations, roasting continental countrysides with raging wildfires and broiling dense urban centers. Olive crops, naturally, are not immune to the sun’s intense deep-frying gaze, and Spain’s Agriculture Minister, Luis Planas, is already warning about the wider impacts: “If there is no temperature relief or rains in the coming weeks, this year’s olive harvest could be notably lower than previous ones,” he told Bloomberg on Tuesday.

Extreme weather is making waves across the entire cooking oil economy:

Spain, which produces half of the world’s olive oil, has already seen prices for the commodity jump over 8% in its benchmark southern regions in June, according to the International Olive Council. Both Spain and Italy, another leading supplier, are expected to produce around 30% less olive oil this year.A cut in olive oil production in Western and Southern Europe, as well as declining sunflower oil production capacity in Ukraine due to the war, will likely inflate prices of all vegetable oils, Planas tells Bloomberg.

Like Oil and Water: Water and oil may not mix, but they do suffer from extreme heat in a roughly similar way, at least financially. In drought-stricken California, prices on the Nasdaq Veles California Water Index, which tracks average water-rights transaction prices in five key markets, have increased as much as 56% this summer since the start of the year, and Governor Gavin Newsom has declared a state of emergency featuring some water-use restrictions. In the Golden State, water soon may be worth its weight in gold.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info