World prices for vegetable oils continued to rise in April and reached the highest level since July 2022. This is evidenced by the data of the FAO Price Index.
The average value of the index in April was 193.9 points, which is 10.9 points (+5.9%) higher than in March. Growth was recorded for all key types of oils – palm, soybean, sunflower, and rapeseed.
The main driver of the increase was palm oil, the prices of which have been rising for the fifth consecutive month. This is due to the expected increase in demand from the biofuel sector, supported by state policies in producing countries, as well as the rise in oil prices. Additional pressure on the market is created by concerns about seasonal production cuts in Southeast Asian countries.
Prices for soybean and rapeseed oil also rose due to active demand from biofuel producers in the United States and the European Union.
At the same time, sunflower oil prices are supported by limited supply in the Black Sea region. Meanwhile, there is some weakening of prices in Argentina against the backdrop of increased processing and growing export stocks.
09 May 2026, EU: Modern agriculture is currently living through a fascinating paradox: while global demands for sustainability and food security are surging, crop protection tools to support EU farmers’ needs are under constant threat.
In this landscape, Digital and Precision Agriculture (DPA) emerges not merely as a trend, but as the true cornerstone of a sector that must be simultaneously productive and resilient. Among the tools leading this revolution, drones or Unmanned Aerial Spray Systems (UASS), stand out as sophisticated instruments that allow farmers to complement their established expertise with field scouting and pest pressure mapping, as well as accurate site-specific (patch) treatment.
The beauty of drone technology in applying plant protection products lies in its capacity to intervene in specific areas of a field, and particularly in challenging terrain. Imagine being able to treat a steep vineyard slope in the Douro Valley or a muddy field after heavy rain where a tractor would surely get stuck. Beyond mere convenience, we are looking at massive environmental gains: the use of drones can reduce water consumption by 90% to 95% [1, 2 ] and drastically lower carbon emissions, as they primarily operate on battery power. Furthermore, by flying over the crop, they eliminate the damage caused by tractor wheel tracks, which can destroy over 5% of a harvest in crops like corn.
However, in the European Union, drones are still tucked away in a complex regulatory drawer. The current Sustainable Use Directive (SUD) classifies drones as “aerial spraying,” which historically refers to aeroplanes and helicopters, and is prohibited by default and only allowed under very specific derogations. In 2024, Portugal took the initiative, backed by 14 other Member States, to ask the European Commission for clearer guidelines on the usage of drones and the inclusion of this and other digital and...
Vegetable oil markets are being supported by geopolitical risks and higher crude oil prices, according to a report by Germany’s Union for the Promotion of Plants and Protein (UFOP).
Palm oil was also benefiting from biodiesel policy developments in Southeast Asia, the 30 April report said.
Vegetable oil prices edged up at the beginning of March but after the escalation of conflict in the Middle East, crude oil prices surged.
Higher crude oil prices improved the competitive advantage of biodiesel and, consequently, also the demand outlook for soyabean oil and rapeseed oil, the report said.
“The oil price shock has been affecting agricultural markets primarily via the energy and biofuel markets, providing particular support for vegetable oil prices.”
With the US biofuels policy providing additional support, soyabean oil prices were €1,155 (US$1,358)/tonne fob German mill at the end of March, up approximately 6% from the end of February.
However, this price level could not be maintained, with prices around the end of April falling to around €1,105 (US$1,299)/tonne, the report said.
On 21 April, rapeseed oil prices were around €1,165 (US$1,369)/tonne, an increase of almost 18% compared with the same period the previous year, although demand remained muted.
“Market participants acted with restraint, observing further developments. The increasingly tight supply of rapeseed oil raffinate has so far failed to stimulate further purchases,” the report said.
UFOP said it expected European Union (EU) rapeseed production to benefit from more ambitious quota requirements under Renewable Energy Directive (RED) III targets.
Since the beginning of March, palm oil prices had also increased and, at the time of the report, had climbed to the top of the vegetable oil price ranking, reaching the equivalent of €1,345 (US$1,581)/tonne.
Expectations of rising biodiesel demand in the two largest palm oil-producing countries, Indonesia and Malaysia, also supported palm oil prices, the report said.
“These expectations could limit the export potential of the leading palm oil suppliers and tighten global supply. On the other hand, prospects of record global palm oil production and a simultaneous slowdown in demand could counteract these price‑supportive factors.”
The global vegetable oil market underwent significant changes in May 2026, as India, the world's largest importer of oils, radically changed its purchasing structure. Due to gas shortages and rising gas prices, the country reduced palm oil imports in April by 27% compared to March to an annual low of 505 thousand tons, while doubling sunflower oil imports to a 22-month high of 435 thousand tons.
Indian traders are buying sunflower oil as a reserve because its processing margin is higher than that of other oils, which encourages imports. Most of the contracts were concluded before the war with Iran, but the complicated geopolitical situation only strengthens this trend.
Argentina is actively increasing its exports of sunflower and its processed products. In the 2025/26 MY, more than 3 million hectares were sown with sunflower, and its harvest increased by 28.6% compared to the previous season to 7.2 million tons. In the provinces of Santa Fe, the area under sunflower increased by 500 thousand hectares, and in other departments they tripled. Experts explain this by a combination of agronomic and economic factors - sunflower is well adapted to arid conditions and is in high demand from processing plants. Early August crops yield significantly higher yields and oil content than October ones.
Prices for Argentine sunflower oil are $1,270-1,300/t FOB, which increases pressure on the world market.
The European Union has significantly reduced imports of oilseeds this season, in particular soybeans by 10% to 10.54 million tons, rapeseed by 29% to 4.12 million tons. Imports of sunflower oil have decreased by 23% to 1.58 million tons, while imports of soybean oil have increased by 57% and rapeseed oil by 94%. The EU industry is actively replacing sunflower oil with blends of soybean and rapeseed oil.
At the same time, demand for sunflower in the EU is growing. Cargill announced an investment of $ 150 million in the modernization of the plant in Saint-Nazaire (France). It is planned to switch production to high-protein sunflower meal for animal feed to reduce dependence on imports. Sunflower husks will be used as fuel for the boiler, which will reduce natural gas consumption and reduce CO 2 emissions by 90%.
In the Russian Federation, sunflower sowing is proceeding very slowly, and by the beginning of May, only 10.2% of the planned areas or 1.23 million hectares had been sown with it, in particular in the Voronezh region – 9%, Kursk – 8%, Lipetsk – 5%. The cold and rainy weather in April delayed sowing in the Central Federal District for 2-3 weeks, and in the Volga region (a region with an area of over 5 million hectares) work has not yet begun. Only the North Caucasus, Krasnodar and Stavropol Territories are adhering to the plans. From May 9, forecasters are again promising rain and a cold snap, but active sowing will be carried out in the period from May 10 to 25. Against the background of the delay in sowing, prices for sunflower increased by 125 rubles/t, for oil – by 175 rubles/t.
Ukraine’s high-oleic sunflower segment has not yet recovered to its pre-war position. Despite a partial expansion of planted areas in recent years, the effect has been offset by weather conditions and unstable premiums, leaving exports of high-oleic sunflower oil limited, according to APK-Inform.
In the 2025/26 season, external shipments could decline to around 207,000 tons, down 8% from the previous marketing year.
At the same time, the export structure is changing. In September–March of the current season, the key buyer — the EU — reduced imports to 84,300 tons (-22%), while its share in total shipments fell to 60% compared to 72% a year earlier.
Meanwhile, the role of other destinations is growing. Malaysia entered the top five importers, increasing purchases by 82%, while Singapore boosted imports more than 30-fold. Steady growth was also recorded in the United States (+13%) and Canada (+53%). In addition, Ukraine is expanding its presence in Middle Eastern markets, particularly in Saudi Arabia (+47%), despite geopolitical risks.
Overall, exports of high-oleic sunflower oil currently reach around 50 countries. However, the gradual reduction of dependence on the European market could become a key driver for the segment’s development in the coming years.
The global lecithin and phospholipids market size garnered $5.1 billion in 2021, and is estimated to generate $8.8 billion by 2031, manifesting a CAGR of 5.6% from 2022 to 2031.
The report provides an extensive analysis of changing market dynamics, major segments, value chain, competitive scenario, and regional landscape. This research offers a valuable guidance to leading players, investors, shareholders, and startups in devising strategies for the sustainable growth and gaining competitive edge in the market.
Global agrifood investor Saudi Agriculture & Livestock Investment Company (SALIC) has completed the purchase of a 44.58% share in Olam Agri, part of global food and agribusiness company Olam Group.
The agreement was based on an implied 100% equity valuation for Olam Agri of US$4bn and closing adjustments.
With completion of the US$1.88bn Tranche 1 sale, SALIC owned 80.01% of Olam Agri with Singapore-based Olam Group retaining 19.99%, Olam Agri said on 27 April.
Following completion of Tranche 2 expected to be finalised within three years, Olam Agri said it would become a 100% owned subsidiary of SALIC.
“The completion of the sale of Tranche 1 in Olam Agri to SALIC is another major step forward in delivering on our reorganisation plan,” said Yap Chee Keong, deputy chairman of Olam Group.
Olam Agri specialises in the processing and trading of animal feed, grains, oilseeds, rice and other products and is active in more than 30 countries. In 2024, the company handled 41.5M tonnes of commodities.
The company sources, trades, ships, distributes and processes grains and oilseeds such as wheat, maize, barley, rye, flaxseed, sorghum, chickpeas and soyabeans.
Its oil portfolio includes palm, rapeseed, soyabean and sunflower oils and it serves sectors from food manufacturing to personal care.
The company also operates edible oil processing and refining plants in Nigeria and Mozambique. where it refines crude vegetable oils and markets refined, bleached and deodorised palm oil, palm olein and refined soyabean oil.
Established in 2009, SALIC aims to achieve food security for Saudi Arabia through domestic and international investments.
Palm oil imports into India fell to a yearly low in April amid weak demand.
Palm oil imports into India dropped by 27% in April to a one-year low, as sluggish demand from institutional buyers and a recent rise in prices, which reduced its discount compared to competing oils, prompted refiners to cut purchases, five dealers said.
The decline in imports by the world’s largest vegetable oil importer could lead to rising inventories in leading producing countries such as Indonesia and Malaysia and put pressure on Malaysian palm oil futures.
According to dealer estimates, palm oil imports in April fell to 505,000 metric tons, the lowest level since April 2025, compared to 689,462 tons in March.
Soybean oil imports in April rose by 24% from the previous month to 355,000 tons, reaching the highest level in four months, while sunflower oil shipments more than doubled to 435,000 tons, the highest level in 22 months.
Total edible oil imports into India are estimated to have increased by 10.4% from March to 1.3 million tons in April, reaching the highest level since January 2026, driven by a sharp rise in purchases of sunflower and soybean oils.
According to dealers, these figures do not include duty-free supplies arriving via land borders from Nepal.
The SEA association is expected to release April import data by mid-May.
Food service establishments and restaurants are facing shortages of liquefied petroleum gas (LPG) for cooking, effectively reducing their consumption of palm oil, and this trend is reflected in the import figures, said Sandeep Bajoria, CEO of Sunvin Group, a brokerage and consulting firm specializing in vegetable oils.
These restaurants serve popular dishes such as samosas and chole bhature, which are typically deep-fried.
India, the world’s second-largest importer of cooking LPG, is facing its most severe gas crisis in decades as the government cuts supplies to industry and raises prices for commercial cylinders to protect households from shortages.
Sunflower oil imports surged in April as processing margins were higher than for competing oils, and Indian buyers placed orders ahead of potential disruptions linked to the conflict with Iran, said Rajesh Patel, managing partner at GGN Research, an edible oil trading firm based in Rajkot, Gujarat.