Vegetable Oil Price Index decreased 22%

The FAO Vegetable Oil Price Index averaged 134.9 points in September, down 3.2 points (or 2.3%) from August. Falling for the eighth month in succession, the Index has reached a three-year low.

Prices weakened across the vegetable oil sector, with palm oil registering the most notable decline.

"Large inventories held in major exporting countries continued to weigh on palm oil values, which recorded a 25% drop compared to the corresponding month of last year," FAO informs.

International soy and rapeseed oil quotations also fell, underpinned by subdued global import demand, while the arrival of ample new-crop supplies in the Black Sea region exerted downward pressure on sunflower oil prices.

Oil World experts project the production of sunflower seeds in MY2018/19 at the level of 51.32 million tons, which is slightly lower than the previous estimate (51.39 million tons), but by 3.3% more than the previous season (49.68 million tons).