Vegetable Oil Price Index marked the highest level in 13 months

The FAO Vegetable Oil Price Index averaged 135.7 points in September, up 1.8 points (or 1.4%) from August, marking the highest level in 13 months.

The modest increase mostly reflects higher price quotations for palm and rapeseed oils, whereas those for soy and sunflower oil fell month-on-month.

According to the report, while international palm oil values rose on steady import demand from India and China, rapeseed oil price quotations continued to increase, fuelled by the EU’s deteriorating production outlook amid firm demand from the biodiesel sector.

In addition, rising crude mineral oil prices lent support to vegetable oil values. By contrast, soy and sunflower oil prices dropped on account of, respectively, sluggish global import demand and prospects of large supplies in the Black Sea region, the message reads.

Previously reported that an increase in the supply of sunflower oil amidst the rich sunflower crop in the Black Sea region and weak demand in the external market were exerting pressure on prices. Supply prices of crude sunflower oil from Ukraine in November-December are at the level of 690-695 $/ton FOB Chernomorsk compared to 695-700 $/ton FOB earlier, while demand prices do not exceed 680-685 $/t.