FAO vegetable oil price index up 2% in July to reach highest level since June 2022
Global vegetable oil prices rose 2% in July to their highest level since June 2022, with the FAO Vegetable Oil Price Index reaching 195.7 points. Palm and soybean oil prices increased on strong biodiesel, feedstock and import demand, while sunflower and rapeseed oils declined amid expectations of larger supplies.
Global vegetable oil prices increased by 2% in July to reach their highest level since June 2022, according to the benchmark United Nations’ Food and Agriculture Organization (FAO) Food Price Index (FFPI) released on 7 August.
The index tracks changes in the international prices of the most globally traded food commodities.
The FAO Vegetable Oil Price Index averaged 195.7 points in July, up 3.7 points compared to the previous month, reflecting higher quotations for palm and soyabean oil, which more than offset lower sunflower and rapeseed oil prices.
“International palm oil prices rose for the second consecutive month, following a brief decline in May, largely underpinned by firm demand from Indonesia’s biodiesel sector and higher crude oil prices, which outweighed downward pressure from seasonally higher production in Southeast Asia,” the FAO said.
“World soyabean oil prices also increased, underpinned by persistently robust feedstock demand in the USA and stronger global import demand amid greater price competitiveness.”
Meanwhile, global sunflower and rapeseed oil prices declined, reflecting expectations of larger supplies in the 2026/27 season, although renewed tensions in the Black Sea region and concerns over the impact of these tensions on export flows limited further price declines, the report said.
The increase in vegetable oil prices – alongside higher quotations for cereals and sugar – was partially offset by declines in meat and dairy product indices.
The FFPI averaged 131.1 points in July 2026, up 0.7 points (0.6%) from its June level.
Year-on-year, the FFPI was 1.3 points (1.0%) higher but remained 29.1 points (18.2%) below its peak reached in March 2022.
The FAO’s vegetable oil price index illustrates the changes in international prices of the 10 most important vegetable oils in world trade, weighted according to their export shares.
To Read more about Edible Oil News continue reading Agriinsite.com
Source : OFI Magazine
