The Prices for Vegetable Oils in the World Fell by 9.8%

The cost of vegetable oil began to decline in the early summer of 2021. According to The Food and Agriculture Organization (FAO), the price of this product dropped in June this year to 157.5 points in absolute terms. Compared to the May level, a decline of 17.2 points or 9.8% was recorded. The FAO report says that the current price of vegetable oils is the lowest in the last 4 months. The strongest decline in prices affected palm, sunflower, and soybean oil.

The FAO reports that negative dynamics have been observed for the first time in 12 months of continuous growth in value. In June, global palm oil prices declined due to an expected increase in product production, but demand for this type of vegetable oil was low. The price of soybean oil has declined not only due to low demand among food producers, but also due to the low activity of biodiesel producers in the United States.

The only type of vegetable oil that has risen in price in June 2021 was rapeseed. Experts attribute these dynamics to an increase in the rate of production of goods from this type of oil in the European Union, which is associated with the weakening of quarantine restrictions.

An additional factor that may affect the cost of sunflower oil in Ukraine is the expected record sunflower harvest in the southern regions. If the forecast comes true, the cost of sunflower oil on the Ukrainian market may significantly decrease.