In February 2025, the FAO price index* for oilseeds continued to rise, up 1.4 points (1.3 percent) month-on-month and marking the highest level since July 2024. By contrast, the oilmeal index declined, shedding 1.1 points (1.2 percent) from January and down 23.4 points (21.3 percent) year-on-year. Meanwhile, the vegetable oil index increased after a brief decline in the previous month, gaining 3.0 points (2.0 percent) from January and as much as 35.1 points (29.1 percent) above its level a year earlier.

The continued increase in the oilseed index was mostly driven by higher soybean and rapeseed prices, more than offsetting somewhat lower sunflower seed quotations. International soybean prices rose marginally in February, largely underpinned by firm demand from the crushing industry across main consuming countries, particularly in Brazil and the United States of America due to lucrative processing margins. Moreover, despite recent beneficial rainfall, lingering concerns about dry conditions in major growing regions in Argentina also provided support to soybean prices, as additional precipitation is required to prevent further deterioration in its crop prospects. In the meantime, global rapeseed quotations rebounded after declining for two consecutive months, primarily reflecting robust crushing demand in Canada, as well as the outlook of shrinking global supplies in the remaining months of the 2024/25 season (July/June). By contrast, world sunflower seed prices registered a marginal downward correction in February, but remained nearly 40 percent above their year-earlier levels, supported by tightening fundamentals amid brisk disposals from major exporters in the Black Sea region at the beginning of the season.

With regard to oilmeals, the slight decrease in the index primarily reflected lower soymeal prices, outweighing the impact of higher rape and sunflower meal values. Following robust oil-driven soybean crushing activities in the Americas, the resulting soymeal outputs led to abundant exportable supplies and weighed on international prices. By contrast, although affected by the spillover effect from the soymeal market, rape and sunflower meal prices were relatively stable, due to smaller production of respective oilseeds in 2024/25.

As for vegetable oils, the moderate increase of the price index was driven by higher quotations across palm, rapeseed, soy and sunflower oils. After a brief decline in January, international palm oil prices rebounded moderately and maintained their premiums over competing oils. The increase was largely underpinned by seasonally lower outputs in Southeast Asian producing countries and expectations of increased demand from the biodiesel industry in Indonesia. Meanwhile, global soyoil prices increased on firm global demand, particularly from the food sector. In the case of sunflower and rapeseed oils, prices were mainly supported by concerns over likely tightening supplies in the coming months.

* The monthly Monthly Price Update is an information product provided by the oilseeds desk of the Markets and Trade Division of FAO. It reviews the development of international prices for oilseeds, oils and meals as reflected by FAO’s price indices. Previous issues can be downloaded from the FAO website at the following webpage: https://www.fao.org/markets-and-trade/publications/oilseeds-archive/en

Please note that the views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO.

Explanatory notes:

FAO's price indices are calculated using the Laspeyres formula; the weights used are derived from export values of each commodity for the 2014–16 period. The indices are based on the following international spot prices for nearest forward shipment (provided by Oil World):

• Components of the oilseeds price index: soybeans, US, cif Rotterdam; Copra Phil./Indo., cif NW Eur. port; rapeseed, Europe, 00, cif Hamburg; linseed, Canada, No.1, cif NW Eur. port; sunflower seed, fob Black Sea (please note that sunflower seed has been added to the index only in January 1976 and, until December 2012, referred to EU, cif Rotterdam).
  
• Components of the vegetable oils price index: soybean oil, Dutch, fob ex-mill; sun oil, EU, fob NW Eur. port; rape oil, Dutch, fob ex-mill; groundnut oil, any origin, cif Rotterdam; cotton oil, US, PBSY, fob Gulf; coconut oil, Phil./Indo., cif Rotterdam; palmkernel oil, Mal./Indo., cif Rotterdam; palm oil crude, cif NW Eur. port; linseed oil, any origin, ex-tank, Rotterdam; castor oil, ex-tank Rotterdam.
• Components of the meals/cakes price index: soy meal, 44/45%, fob ex-mill Hamburg; sun pell., 37/38%, Arg., cif Rotterdam; rape meal, 34%, fob ex-mill Hamburg; copra exp. pell., Phil., domestic; palmkernel exp., 21/23%, cif Rotterdam.