Global vegetable oil prices stabilise

Published Feb 15, 2024

Tridge summary

The FAO vegetable oil price index saw a slight increase in January, despite being 12.8% lower than the same month in 2023, due to a rise in palm and sunflower oil prices which offset lower soybean and rapeseed oil prices. The increase in palm oil prices was attributed to reduced production in Southeast Asia and poor growing conditions in Malaysia, while sunflower oil prices rose due to increased demand from Turkey. Conversely, soybean and rapeseed oil prices fell due to increased supply from South America and large rapeseed stocks in the EU. Meanwhile, the FAO cereal price index dropped by 2.2% from the previous month and 18.6% year on year, due to strong competition and reduced demand for wheat, as well as improved growing conditions and large stocks for maize.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The FAO vegetable oil price index averaged 122.5 points in January, which was marginally up on the previous month, but still 12.8% below the January 2023 level. In January, higher palm oil and sunflower oil prices contrasted with, and practically offset, lower soybean and rapeseed oil prices. The rise in palm oil prices was first due to seasonally lower production in the most important Southeast Asian palm oil-producing countries. Another reason was concerns about poor growing conditions in Malaysia. Prices for sunflowerseed oil also climbed somewhat. Investigations conducted by Agrarmarkt Informations-Gesellschaft suggest that the main factor driving the increase was higher demand, especially from Turkey. In contrast, prices for soybean and rapeseed oil declined because the soybean harvest that has started in South America is set to increase supply of South American soybeans in the near future. Moreover, continued large rapeseed stocks in the EU weighed prices down. International ...

Source: UkrAgroConsult