FAO’s Veggie Oil Index jumps 4% in December to 3-year hihg: UFOP

In Germany, UFOP reports that the vegetable oil price index of the Food and Agriculture Organization of the United Nations (FAO) surged by more than 4 per cent in December 2016, reaching a three-year high. Nevertheless, the index is far below its January 2011 record.

According to the German trade group, “Prices for vegetable oils have risen considerably over the past few months. In December 2016, the vegetable oil price index reached the highest level since July 2014. It was especially driven by the rising prices for palm and soybean oil over the past year. Palm oil prices benefited from low global stocks and the continued shortage of supply. According to information published by Agrarmarkt Informationsgesellschaft mbH (AMI), prices for soybean oil firmed substantially in the wake of the recent poor weather conditions in key exporter Argentina and increasing demand from the biodiesel industry in the US, Brazil and Argentina. The FAO price index illustrates the changes in international prices of the ten most important vegetable oils in world trade. Since its lows in 2015, the index soared by more than 36 per cent. At 183 points, the December 2016 index was up 4 per cent from the previous month and just under 30 per cent year-on-year.”