In May 2025, all three FAO price indices tracking the price developments of the oilcrops complex declined. The oilseed and oilmeal indices* eased by, respectively, 1.3 and 3.3 points (1.1 and 3.7 percent) from April and remained below their year earlier levels. Meanwhile, the vegetable oil price index contracted by 5.8 points (3.7 percent) month-on-month, but remained 19.1 percent above its May 2024 level.

The fresh decline of the oilseed index reflected the combined effect of marginally higher soybean quotations and lower rapeseed and sunflower seed values. International soybean prices fluctuated within a narrow range and averaged slightly higher in May. While harvesting delays in Argentina due to excessive rainfall received in some main growing regions provided support to South American quotations, the impact was largely offset by swift sowing progress in the United States of America amid favourable weather conditions. On the policy front, the market was somewhat supported by the 90-day reduction of import tariffs between China and the United States of America, although the impact on the 2025/26 trade remained uncertain, hinging on the outcome of negotiations. Meanwhile, global rapeseed prices declined, largely due to prospects of higher production in the imminent 2025/26 harvest in the European Union. Nevertheless, higher-than-expected exports in recent months from Canada, the world’s leading rapeseed exporter, are anticipated to result in tighter inventories in the country, limiting the downside pressure on international prices in the coming months. Likewise, for sunflower seed, the contraction of world quotations primarily reflected prospects of increased plantings and production in the Black Sea region, where farmers were also reportedly increasing their sales of old crop, expecting favourable harvests in the coming season.

With regard to oilmeals, the price index declined for the second successive month in May, mostly reflecting lower soymeal values, the component with a dominant weight in the index. The downward trend in soymeal prices remained to be driven by seasonally higher export supplies from South America, due to ample soybean supplies and oil-driven crushings in both Argentina and Brazil.

As for vegetable oils, the continued decline reflected lower quotations for palm, rapeseed, soy and sunflower oils. International palm oil prices declined markedly for the second consecutive month, maintaining a discount over competing oils since mid-April. The drop was primarily underpinned by seasonally larger outputs and export availabilities in Southeast Asia. Global soyoil prices also eased, pressured by improved availabilities in South America and subdued demand for biofuel feedstock, particularly in the United States of America. Rapeseed oil prices dropped, mostly reflecting prospective improved supplies with the imminent harvest in the European Union, while sunflower oil prices fell due to weakening global import demand and declining price competitiveness.

* 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.