World vegetable oil prices rose 2.4% in July, according to FAO

Published Aug 5, 2024

Tridge summary

In July, vegetable oil prices saw a 2.4% increase, marking the second consecutive rise and the highest in over a year and a half, as reported by the UN's Food and Agriculture Organization (FAO). This increase is attributed to higher global prices for palm, soybean, sunflower, and rapeseed oils. The rise in palm oil prices is due to increased global imports and slowed production growth in Indonesia, the world's leading producer. Soybean oil prices have been on a steady rise for three consecutive months, largely driven by high demand from the biofuels sector in the Americas. The price increase of sunflower and rapeseed oils is primarily due to deteriorating crop prospects for the 2024/25 season in major producing countries. Despite this, the overall food price index prepared by the FAO remained largely unchanged in July compared to the previous month, but fell by about 3% compared to the same month the previous year.

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Original content

World prices of vegetable oils rose 2.4% in July compared to the previous month, representing the second consecutive increase and the highest level in a year and a half, according to the food price index prepared by the Organization of the United Nations for Food and Agriculture (FAO). The continuous increase is due to the rise in global prices for palm, soybean, sunflower and rapeseed oils. International palm oil prices rose slightly, mainly due to firm global imports that coincided with below-potential production growth in Indonesia, the world's top palm oil producer. For their part, global soybean oil prices appreciated for the third consecutive month in July, mainly due to the persistently high demand from the biofuels sector in the Americas. Regarding sunflower and rapeseed oils, the rise in international prices was mainly due to the deterioration of the prospects for the crops of the respective oilseeds in the 2024/25 campaign in several of the main producing countries. FAO ...

Source: Agropopular