FAO – Monthly Price Update, Aug 2024

In August 2024, the FAO price indices for oilseeds and oilmeals decreased, while the vegetable oil index continued to rise. The decline in the oilseed price index was due to lower soybean and sunflower seed prices, despite higher rapeseed quotations. Soybean prices hit their lowest level since November 2020 due to favorable weather conditions in the US and increased farmer sales in Brazil. Sunflower seed prices eased slightly, influenced by ample old crop stocks in Russia. On the other hand, rapeseed prices increased due to poor production outlook in the EU. Lower soymeal values drove the contraction of the oilmeal price index. There were expectations of abundant soymeal supplies in the upcoming season. Vegetable oil prices rose across palm, soy, sunflower, and rapeseed oils, with palm oil prices increasing due to strong global import purchases and below-potential output growth in Indonesia. Soyoil prices continued to rise due to demand from the biofuel sector, while sunflower and rapeseed oil prices increased due to poor crop prospects in major producing countries.