Growth in sunseed processing will boost global edible oil exports in 2026

In the fall of 2024, the global sunflower oil market faced unprecedented price increases, according to OilWorld (Germany), reaching three-year highs. The key factors were a mismatch in harvest forecasts, low farmer market activity, and declining inventories in major producing countries.

The situation was exacerbated by a significant decline in crushing volumes in the Black Sea region and the EU. As a result, sunflower oil is trading at a record premium of $220-240 per tonne compared to soybean, rapeseed, and palm oils.

Global sunflower seeds crushing volumes are forecast to decline by 0.5-0.8 million tonnes year-on-year in the last quarter of 2025. Growth will resume only in 2026, driven by active farmer sales and increased production and exports from Argentina. This is expected to increase global exports by 1.4 million tonnes.

Despite some growth, global stocks will remain below average, which will continue to put pressure on the market.

Earlier, the FAO Vegetable Oil Price Index rose to 169.4 points (+0.9%), the highest since July 2022. The increase was driven by rising prices of palm, rapeseed, soybean, and sunflower oils. The main factors contributing to this increase were reduced supplies from the Black Sea region, strong domestic demand in Brazil and the US, and limited supplies in the EU.

Tags: sunflower oil, prices, sunseed