In November 2024, the FAO price index* for oilseeds continued to increase for the third consecutive month, gaining 0.7 points (0.6 percent) from October but remained 13.2 percent below its year earlier level. The vegetable oil price index also strengthened, up 11.4 points (7.5 percent) month-on-month to reach its highest level since July 2022. By contrast, the oilmeal price index fell markedly, down 10.2 points (10.7 percent) from the previous month and stood 37.6 percent below its November 2023 reading.

The marginal increase of the oilseed price index mostly reflected higher rapeseed and sunflower seed prices, more than offsetting a slight contraction in soybean quotations. Following a renewed decline in the previous month, international soybean prices continued to slide on a downward trajectory in November. Notwithstanding a lower-than-expected production estimate in the United States of America in its monthly World Agricultural Supply and Demand Estimates (WASDE) report, global soybean prospects in the 2024/25 season remain abundant, largely underpinned by expectations of favourable harvests in South America. While beneficial rainfall prompted a rapid wrap-up of sowing operations in Brazil, generally sufficient soil moisture levels in Argentina were also favourable for plantings, which were halfway completed by the end of November. On the demand side, however, continued firm import purchases for US produced soybeans by China, in preparation for potential trade policy changes, limited further decline in soybean quotations. In the case of rapeseed, world prices rose for the third consecutive month on tightening fundamentals for 2024/25, while international sunflower seed prices also rose markedly, following reports of additional downward production revision in the Black Sea region.

As for oilmeals, the significant decline in the index was driven by lower prices across rapeseed, soy and sunflower meals. Continuing favourable crush margins in major consuming countries boosted soybean crushings, resulting in ample soymeal production globally, while rape and sunflower meal prices also followed suit, despite relatively tighter supplies due to reduced production of respective oilseeds.

By contrast, the vegetable oil index has been increasing uninterruptedly since June 2024, driven by higher quotations for palm, rapeseed, soy and sunflower oils. International palm oil prices increased for the sixth consecutive month, maintaining a premium over alternative oils due to lingering concerns about lower-than-expected global production amid excessive rainfall in Southeast Asia. Meanwhile, world soyoil prices also continued to rise, mainly due to robust global import demand. Similarly, prices of rapeseed and sunflower oils increased, reflecting prospects of tightening global supplies in their respective markets.

* 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/en/?querystring=oilseeds

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.