Olive Oil Prices Stable Amid Spanish Harvest Losses
Spanish olive oil prices held firm in early June 2026 as harvest disruptions from rain and labor shortages tightened supply.
Olive oil prices at origin remained high in early June 2026, as rain damage to the Spanish harvest tightened supply. Spanish conventional extra virgin olive oil traded near 4.2 to 4.5 euros per kilogram. Spain, the largest producer in the European Union, faced a challenging season due to weather and labor issues.
The Jaen region, a key olive-growing area, saw an estimated 45% drop in output year-on-year. Heavy rainfall reduced effective harvesting days and the volume of olives collected. This regional shortfall tightened the supply of higher-quality oil and widened the gap between premium and standard grades.
Buyers responded by capping prices, limiting further increases despite tight supply. The quality variations complicated the market, as rain affected both quantity and the proportion of oil meeting extra virgin standards. Italian producers also contended with high production costs.
Early forecasts offer a potential easing of the situation. Following rains in early 2026, industry participants anticipate a larger Spanish crop of around 1.7 million tons for the 2026/27 season. A harvest of this size would alleviate supply tightness and could lower origin prices later in the year, although the crop is still months from being secured.