The average value of the FAO Vegetable Oil Price Index continued to decline in May to 118.7 points, down 8.7% from April and 48.2% from May 2022, the organization’s press service said.
“The continuing decline in the value of this index was a reflection of the fall in international prices of palm, soybean, canola and sunflower oils,” explain the experts.
Thus, in May the prices for palm oil decreased noticeably, though in April the correction in the market was practically not observed. This decline occurred against the background of weak import demand and the expected increase in production in the major producing countries.
Prices for soybean oil declined for the sixth month in a row: in May it occurred under the influence of forecasts of a record soybean crop in Brazil and high oilseed residues in the USA.
Prices on rapeseed and sunflower oil also continued to fall, which is explained by FAO experts with significant stocks of these products in the world.