Vegetable oil prices stepped up on active demand and rising crude oil

The FAO Vegetable Oil Price Index averaged 184.8 points in October, up 16.3 points (or 9.6%) month-on-month and marking an all-time high.

"The increase was driven by firmer price quotations for palm, soy, sunflower and rapeseed oils. International palm oil prices increased for a fourth consecutive month in October, largely underpinned by persisting concerns over subdued output in Malaysia due to ongoing migrant labour shortages," the report reads.

In the meantime, world prices of palm, soy and sunflower oils received support from reviving global import demand, particularly from India that lowered import tariffs further on edible oils.

Inside view: Vegetable Oil Refinery and Deodorization Plant in Ukraine

As for rapeseed oil, the continued strength in international values chiefly stemmed from protracted global supply-demand tightness. Noticeably, rising crude oil prices also lent support to vegetable oil values.

Crude sunflower oil production in Ukraine in 2020/21 totalled 4.7 mln t. Refined sunflower oil output by crushers in Ukraine made up 745.3 thou. t.

Ukroilprom projects sunflower oil production in Ukraine in 2021/22 to grow by 24% YoY.


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