The Food and Agriculture Organisation (FAO) price index for vegetable oils in April slipped 5.2% compared to the previous month.
This was down 7.2 points to 131.8 points - the lowest level since August 2019 and also the third decline in the last three months.
According to the FAO the reason was falling prices for palm oil, soybean oil and rapeseed oil. In contrast, sunflower oil became more expensive. Palm oil dropped especially sharply compared to the previous month.
The Union zur Förderung von Oel- und Proteinpflanzen (UFOP) stated that the slump was mainly due to the COVID-19 economic downturn and the associated sharp decline in diesel and biodiesel consumption to meet blending quota requirements.
The pressure on prices was also exacerbated by the ruinous competition in crude oil production as prices recently hit historic lows.
UFOP has pointed out that, at the same time, larger than expected palm oil production and increased supplies in Malaysia put pressure on vegetable oil prices.
Prices for soybean oil and rapeseed oil were also pulled down. Soybean oil was under additional downward pressure from swelling supply based on a temporary significant increase in US processing volumes.
In contrast, international sunflower oil prices rebounded slightly in April on support from brisk import demand and concerns about shortages in exportable supply.
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