The prices of vegetable oils average the United Nations Food and Agriculture Organization (FAO), 164.7 points in December 2019, an increase of 14.1 points, or 9.4%, over its level in November 2019, which represents the highest level in 25 months.
The latest rise is mainly due to the increase in palm oil prices along with the increase in soybean oil, sunflower oil and rapeseed as well.
International prices in palm oil increased for the fifth consecutive month due to increased demand, especially from the biodiesel sector, in line with expectations of reduced supplies.
Commenting on the positive impact of the increase in palm oil prices, the prices of soybean, sunflower and rapeseed oils, respectively, responded to a decrease in crushing volumes in the major producing countries and an improvement in global demand for imports and concerns about the decline in global supplies.
Despite the significant new rise in prices since November 2019, the average FAO vegetable oil price index for 2019 was 135.2 points, a 8.9 point decrease from 2018, the lowest annual rate since 2006.