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The Vegetable Oil Price Index increased by 12.1% in July compared to the previous month after seven months of consecutive declines, according to the benchmark United Nations’ Food and Agriculture Organization (FAO) Food Price Index.

The FAO Food Price Index tracks changes in the international prices of the most globally traded food commodities and the FAO’s Vegetable Oil Price Index illustrates changes in international prices of the 10 most important vegetable oils in world trade, weighted according to their export shares.

According to the 4 August report, the sharp increase in the Vegetable Oil Index in July was driven by higher global prices for sunflower, palm, soyabean and rapeseed oils.

“International sunflower oil prices rebounded by more than 15% in the month, due mostly to renewed uncertainties surrounding exportable supplies after the Russian Federation’s decision to end implementation of the Black Sea Grain Initiative. World prices for palm, soyabeans and rapeseed oils increased on concerns over output prospects in leading producing countries,” the FAO said.

“World palm oil prices also rose markedly, reflecting prospects of subdued production growth in leading producing countries. As for soyabean and rapeseed oils, international prices increased on continuing concerns over the production outlooks of soyabeans in the USA and rapeseed in Canada, respectively. Rising world crude oil quotations also lent support to vegetable oil prices.”

The FAO Food Price Index averaged 123.9 points in July, up 1.3% compared to the previous month while 11.8% below its July 2022 level.

Prices for most cereals and dairy products dropped – by 0.5% and 0.4% respectively – in July, according to the report.

The FAO Sugar Price Index and the FAO Meat Price Index also decreased – by 3.9% and 0.3% respectively – compared to the previous month.