With the turmoil on grain markets dominating the news, developments in other commodities vital for global food security are sometimes overlooked. Vegetable oils, for example, which constitute the second most significant source of calories after cereals, had reached record high nominal prices in May. According to the latest information, this price hike seems to have come to an end.

Several factors had been driving up prices, including reduced oilseed production in several key suppliers (Brazil, Canada and Malaysia); increased demand for biodiesel in view of high energy prices; export restrictions of the world’s largest palm oil producer Indonesia; and of course the disruptions of sunflower oil exports from Ukraine.

The global situation has improved significantly since then. Higher expected 2022/23 production in Brazil and Canada, fewer export restrictions in Indonesia and a partial resumption of Ukrainian trade is expected to help meet global import demands. Not surprisingly, therefore, FAO's Vegetable Price Index dropped 6.6 percent last month to reach the lowest level since February 2021. Apart from better fundemantals in the vegetable oil complex, the price decline has also been attributed to lower crude oil prices.