Limited supply from Ukraine supports growth in world sunflower oil prices – FAO
The Food and Agriculture Organization reported its Vegetable Oil Price Index fell 4.6% in May, the first decline in 2026, due to lower palm and soybean oil prices. However, sunflower and rapeseed oil prices increased, with sunflower oil supported by limited global supplies, particularly from Ukraine.
World prices for sunflower oil continued to rise in May due to limited supply, primarily from Ukraine. This is stated in the May report of the Food and Agriculture Organization of the United Nations (FAO).
Overall, the average value of the FAO Vegetable Oil Price Index in May was 185 points, which is 4.6% less than in April. This was the first monthly decrease in the indicator since the beginning of 2026.
The decline in the index is primarily explained by the decline in the price of palm and soybean oil. After five months of continuous growth, world prices for palm oil decreased due to the expected weakening of import demand and uncertainty in the oil market.
Soybean oil prices showed mixed dynamics. In South America, the market was pressured by a seasonal increase in export supply, while in the United States, quotes were supported by stable demand from biofuel producers.
At the same time, rapeseed and sunflower oil prices rose. Rapeseed oil prices rose due to seasonal supply cuts in the European Union.
As for sunflower oil, the FAO notes a further increase in quotations due to limited availability of the product on the world market. One of the key factors, the organization says, is the continued limited supply from Ukraine.
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Source : Ukr Agro Consult
