In December 2024, the FAO price index* for oilseeds contracted after rising for three consecutive months, shedding 1.6 points (1.4 percent) month-on-month and standing 13.3 percent below its year-earlier level. The vegetable oil index also declined, down 2.0 points (1.2 percent) from the multi-year high registered in November. By contrast, the index for oilmeals slightly rebounded, up 1.4 points (1.6 percent) from the previous month, but still down 31.5 percent year-on-year.

The latest decline of the oilseed index reflected lower prices across soybeans, rapeseed and sunflower seed. International soybean prices have been easing since October, largely driven by favourable crop prospects in South America amid generally conducive weather conditions. Plantings in Brazil and Paraguay were completed by the end of December, while sowing operations were also wrapping up in Argentina. On the other hand, a further drop of prices was contained by a firm global import demand reflectingf relatively low purchasing costs, as well as by some concerns over insufficient precipitation in the southern region of Brazil. In the meantime, both rapeseed and sunflower seed prices registered a downward adjustment after reaching respective recent highs in the previous month. While world rapeseed prices were mainly weighed by uncertain demand outlook from the biofuel sector for the coming year, heavily frontloaded supplies of sunflower seed underpinned a slight decline in its quotations.

With regard to oilmeals, higher soymeal quotations were the main driver behind the increase of the price index. Despite ample global supplies following robust oil-driven crushings, a insufficient supply of rape and sunflower meals prompted a shift of demand towards soymeal, particularly in Europe. In addition, global production outlook for pork and poultry is reported to be positive for 2025, potentially providing underlying support to protein meal prices.

As for vegetable oils, the marginal decrease of the index mainly reflected lower soy, rapeseed and sunflower oil prices, more than offsetting slightly higher palm oil prices. In December, international palm oil quotations on average increased marginally from the previous month, largely driven by protracted tight supplies in leading producing countries in Southeast Asia. By contrast, world soyoil prices fell moderately, underpinned by prospects of ample global supplies and somewhat weaker demand in the United States of America. Meanwhile, world rapeseed and sunflower oil prices also declined due to contraction in demand.

For 2024 as a whole, the annual averages of oilseed and oilmeal indices declined by, respectively, 17.1 and 25.3 points (13.4 and 19.9 percent) from 2023, largely due to prospects of ample global soybean production, more than offsetting the impact of lower rapeseed and sunflower seed harvests. By contrast, the vegetable oil price index firmed by 11.8 points (9.3 percent) year-on-year amid tightening global supplies.

 

 

 

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* 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.