Vegetable oil prices decline to 5-month low

January 21, 2018 |

In Italy, the Food and Agriculture Organization of the United Nations reports that the vegetable oil price index fell to a five-month low in December 2017. FAO’s price indices for oilseeds and vegetable oils fell by, respectively, 2.2 and 9.6 points (or 1.5 and 5.6 percent), whereas the oilmeal index rebounded by 7.0 points (or 4.4 percent) to a 10-month high. While the oilseed and vegetable oil indices remained below the levels recorded in the corresponding month of the previous year, the oilmeal index posted a marginal gain over the previous year’s value.

The drop in the oilseeds index, which ends the upward trend observed since September 2017, mainly reflects weakening quotations for soybeans and rapeseed. The long-awaited arrival – towards mid-December – of rains in Argentina eased the markets’ concerns over the country’s soybean crop, which, together with higher forecasts for the Brazilian crop and an upward revision in global 2017/18 ending stocks by USDA (on 12 December) provided relief to international soybean values.

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Category: Fuels

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