FAO Vegetable Oil Price Index Down 3.7% in May

In May 2025, the average value of the FAO Food Price Index (FPI) was 127.7 points, 0.8% lower than in April. The decline in prices of cereals, sugar and vegetable oils exceeded the increase in the cost of dairy products and meat.

Despite this, the overall index was 6.0% higher than the May 2024 figure, but still 20.3% lower than the record set in March 2022.

 

Vegetable oils

The FAO Vegetable Oil Price Index stood at 152.2 points in May, down 3.7% (5.8 points) from April. However, the index is still 19.1% above its level last year.

The drop in prices is due to a decrease in quotations for four main types of oil: palm, rapeseed, soybean, and sunflower.

• Palm oil : Global prices have fallen for the second consecutive month due to seasonal increases in production and export stocks in Southeast Asia. The price differential with alternative oils that has been building since mid-April remains.

• Soybean oil : fell in price due to increased supply from South America and reduced demand for biofuel feedstock, especially in the US.

• Rapeseed oil : the decrease is due to expectations of increased supply against the background of the start of the harvest in the EU.

• Sunflower oil : lost in price due to weak import demand and reduced competitiveness on the world market.

 

Crops

The FAO Cereal Price Index in May was 109.0 points, down 1.8% from April and 8.2% lower than in May 2024.

• The largest decrease was recorded for corn , due to active competition in the market, seasonal increases in supply from Argentina and Brazil, as well as expectations of a record harvest in the US in 2025.

• The decline also affected sorghum and barley .

• Wheat prices fell moderately due to lower demand and favorable weather conditions in the Northern Hemisphere.

• The end of May brought precipitation to some regions of Europe, the Black Sea region, and the United States, which reduced the risks of drought.

• Rice was the exception: the average rice price index increased by 1.4%, driven by robust demand for aromatic varieties and higher prices for Indian rice, driven in part by the strengthening of exporters' currencies against the US dollar.