- UFOP
Global vegetable-oil prices stabilize
The United Nations’ Food and Agriculture Organization vegetable-oil price index averaged 122.5 points in January, which was marginally up on the previous month, but still 12.8 percent below the January 2023 level.
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In January, higher palm-oil and sunflower-oil prices contrasted with, and practically offset, lower soybean- and rapeseed-oil prices.
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The rise in palm-oil prices was first and foremost due to seasonally lower production in the most important Southeast Asian palm oil-producing countries.
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Another reason was concerns about poor growing conditions in Malaysia.
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Prices for sunflower-oil also climbed somewhat.
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Investigations conducted by Agrarmarkt Informations-Gesellschaft (mbH) suggest that the main factor driving the increase was higher demand, especially from Turkey.
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In contrast, prices for soybean- and rapeseed-oil declined because the soybean harvest that has started in South America is set to increase supply of South American soybeans in the near future.
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Moreover, continued large rapeseed stocks in the EU weighed prices down.
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International grain prices weakened across the board last month.
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The FAO cereal price index was at 120.1 points, which was down 2.2 percent from the previous month’s level.
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Year on year, the decline amounted to as much as 18.6 percent.
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Wheat prices were weighed down by continued strong competition between the main exporters and dwindling demand.
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International prices for maize also fell sharply on the previous month.
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The main reasons were better growing conditions in Brazil and prospects of an abundant maize harvest in Argentina, which is expected to generate large export volumes for both countries.
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Also, the U.S. has large maize stocks following the 2023 harvest.