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The Food and Agriculture Organization (FAO) vegetable oil price index reached its highest level since April 2014 in November last year, driven by firm prices for all vegetable oils, especially palm.
The index illustrates the evolution of international prices for the ten most important vegetable oils in world trade and had an average of 121.9 points in November 2020.
“This translates into a significant increase of 15.4 points, or 14.5% month-on-month, and marks the highest level since March 2014,” said the German Union for the Promotion of Oil and Protein Plants (UFOP) on December 9th.
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The index level came from higher palm oil prices, but rapeseed and soybean oil prices also rose in November, UFOP said.
According to the Agrarmarkt Informations-Gesellschaft (mbH), international palm oil prices rose for the sixth consecutive month in November due to a sharp fall in global stocks as a result of lower production in major palm oil producing countries, combined with heated global demand.
Soybean oil prices also increased due to lower availability for export in South America and strong purchasing interest, mainly from India.
Additionally, rapeseed and sunflower oil prices rose based on limited supply, while all vegetable oil prices benefited from rising international mineral oil prices, which accompanied due to biodiesel blending.
This text was automatically translated from English.
Source: Oils & Fats International (OFI)
