The Vegetable Oil Price Index increased by 3% in June compared to the previous month, according to the benchmark United Nations’ Food and Agriculture Organization (FAO) Food Price Index (FFPI).
The FFPI 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 5 July report, the increase in the Vegetable Oil Index in June was driven by higher global prices for palm, sunflower and soyabean oils while rapeseed oils remained virtually unchanged.
“After declining for two consecutive months, international palm oil prices rebounded in June, mainly underpinned by a reviving global import demand due to increased price competitiveness,” the FAO said.
“Meanwhile, world soyabean and sunflower oil prices continued to rise, underpinned, respectively, by firm demand from the biofuel sector in the Americas and declining export availabilities in the Black Sea region.”
Although international rapeseed oil prices remained relatively stable in June, they were markedly above the previous year’s level due to a tightening global supply outlook for the 2024/25 season, the FAO said.
The FFPI stood at 120.6 points in June, unchanged from the FAO’s revised May figure, as increases in the prices for vegetable oil, sugar and dairy products balanced out a decrease in cereal prices, while meat prices were almost unchanged.
However, the FFPI remained 2.1% lower compared to the same period the previous year and 24.8% below its peak of 160.3 points in March 2022.
