The Food and Agricultural Organisation (FAO) vegetable oil price index reached its highest level since April 2014.
It was driven by firming prices for all main vegetable oils – in particular palm oil.
FAO's vegetable oil price index, which illustrated the changes in international prices of the 10 most important vegetable oils in world trade, averaged 121.9 points in November.
This translated to a significant rise of 14.5% month on month and marked the highest level in the past six years.
In addition to palm oil, prices for soybean, rapeseed and sunflower oil also edged higher in November.
According to investigations conducted by Agrarmarkt Informations-Gesellschaft, international prices of palm oil climbed for the sixth month running.
The reason was the sharp decline in global stocks due to sub-standard output in the key palm oil-producing countries combined with buoyant global demand.
Prices for soybean oil rose in the light of the reduced availability for exports in South America and strong buying interest, especially from India.
Prices for rapeseed and sunflower oil also climbed based on limited supply. Moreover, all vegetable oil prices benefited from rising international mineral oil prices.
The Union zur Förderung von Oel- und Proteinpflanzen saw the increase as an absolute necessity in view of producers’ incomes and previous years' price levels.
The association said rising production costs and regulatory requirements that lead to reduced yields can only be offset by sufficiently high producer prices.
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