World prices of vegetable oils decreased by 2.4% in May, according to FAO

Published Jun 11, 2024

Tridge summary

In May, the world prices of vegetable oils experienced a 2.4% decrease from the previous month, despite being 7.7% higher than the year before, as reported by the FAO's food price index. This decline was primarily driven by a drop in palm oil prices, which was partly offset by increases in soybean, rapeseed, and sunflower oil prices. International palm oil prices have fallen for two consecutive months due to increased seasonal production and weak global import demand. In contrast, global soybean oil prices surged due to demand from the biofuels sector, especially in Brazil. Sunflower and rapeseed oil prices also rose due to anticipated supply shortages. The FAO's food price index for May stood at 120.4 points, showing a 0.9% increase from April.

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Original content

World prices of vegetable oils decreased by 2.4% in May compared to the previous month, although they are 7.7% above their level a year ago, according to the food price index, prepared by the Food and Agriculture Organization of the United Nations (FAO). The decline in the index was mainly due to the drop in palm oil prices, which more than offset the increase in soybean, rapeseed and sunflower prices. International palm oil prices declined for the second consecutive month in May, as seasonal production increased in major producing countries in Southeast Asia amid prolonged weakness in global import demand. On the contrary, global soybean oil prices rebounded, generally supported by growing demand from the biofuels sector, particularly in Brazil. Sunflower and rapeseed oil prices also rose, mainly due to the seasonal decrease in exportable availabilities in the Black Sea region and the probability of greater supply shortages in the next 2024/25 campaign, respectively. Food prices ...

Source: Agropopular