Vegetable oil prices lost substantial ground: UFOP
In Germany, UFOP reports that the vegetable oil price index of the Food and Agriculture Organization of the United Nations (FAO) fell around 4 per cent to a nine-month low in April 2017. Prices for palm and soybean oil saw an especially sharp decline.
Vegetable oil prices decreased considerably over the first half year of 2017. Whereas at the beginning of the year the FAO vegetable oil price index, which illustrates the changes in international prices of the ten most important vegetable oils in world trade, was at its highest level since July 2014, the index slumped sharply over the months that followed. The vegetable oil price index for April 2017 was down just less than 4 per cent from the previous month. This was the lowest level in nine months. Weaker asking prices for palm and soybean oil weighed especially heavily on the sector, Agrarmarkt Informationsgesellschaft (AMI) reported. Growth in production on Southeast Asian oil palm plantations coincided with falling demand, resulting in downward pressure on prices. Asking prices for soybean oil were also affected by the global oversupply. Bumper soybean crops in South America and the foreseeable record soybean area in the US put a cap on upward movements of prices.
Category: Fuels
