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The benchmark United Nations Food and Agriculture Organization (FAO) Vegetable Oil Price Index averaged 142.4 points in September – up 6.2 points (4.6%) from the previous month – to reach its highest level since early last year.

The FAO’s Food Price Index (FFPI) tracks changes in the international prices of the most globally traded food commodities and the 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 October report, the increase in the Vegetable Oil Index in September was driven by higher global prices for palm, rapeseed, sunflower and soyabean oils.

“International palm oil prices rose for the fourth consecutive month in September, underpinned mainly by concerns over lower-than-expected production that coincided with anticipated seasonal output declines in major Southeast Asian producing countries,” the FAO said.

“Meanwhile, world soyabean oil quotations rebounded, due primarily to lower-than-expected crushings in the USA.”

Marginal price recoveries for sunflower and rapeseed oils in September were supported by a tightening supply outlook, following reduced outputs of respective oilseeds in the 2024/25 season.

The FFPI stood at 124.4 points in September 2024, up 3% from the previous month and marking the largest month-on-month increase since March 2022.

Price for all commodities included in the index strengthened, with the increases ranging from 0.4% for the meat price index to 10.4% for sugar.

Compared to historical levels, the FFPI in September was 2.1% higher compared to the previous year but 22.4% below its peak of 160.3 points reached in March 2022.