Black Sea region: competition for the buyer in the sun oil market will continue in the new season

UkrAgroConsult

Article author:

Svetlana Kupreeva

Oilseed Market Analyst

Ukraine and Russia traditionally remain the world’s top sunflower growers. MY 2020/21 was exposed to a decline in this oilseed’s harvest and became the most atypical season.

With regard to sunflower oil exports, both countries are forced to apply state regulation measures for curbing growth in retail sunflower oil prices.

In the season of 2021/22, growth in global sunflower oil consumption to a record level is expected (USDA, October 2021) by +9% from MY 2020/21.

The sunflower oil import pattern remains stable, with India’s and the EU’s shares staying at last season’s levels and China enhancing its position at the expense of other countries.

The 2021/22 rise in global sunflower oil sales stems from expectations of a bumper crop in the Black Sea region. The key competing exporters of sunflower oil – Ukraine and Russia – went different ways regarding state regulation of its foreign sales. Ukraine gave up export restrictions, while Russia continued its policy of controlling domestic prices by the means of a floating duty on sunflower oil exports. Ultimately, the above must have no adverse effect on export statistics.

The estimates of 2021/22 sunflower oil exports are bullish: up 32% for Ukraine, up 19% for Russia. So, exporters will have to struggle for the export markets, UkrAgroConsult reports.

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Tags: Ukraine, Russia, China, sunflower oil, sunflower, Turkey