Production growth, falling demand and global oversupply dragged vegetable oil prices to a nine-month low in April 2017, according to the latest statistics from German agri market information firm Agrarmarkt Information-Gesellschaft (AMI).
The vegetable oil price index of the Food and Agriculture Organization of the United Nations (FAO) fell around 4%, with palm and soyabean oils seeing a particularly sharp downturn.
Earlier in the year, the index reached 186, the highest it had been since July 2014, but weaker asking prices for palm and soyabean oil weighed down the entire sector in the months that followed to 161 in April, said AMI.
Growth in production on Southeast Asian oil palm plantations coincided with falling demand, which resulted in downward pressure on the prices, alongside soyabean oil prices being affected by global oversupply.
Upwards movement on the prices was limited by a bumper crop of soyabean in South America and the projected record soyabean planted area in the USA this year.