Price spread between Argentine and Black Sea sunflower oil has reached a multi-year high

The global market is still not fully experiencing the availability of sunflower oil, as the rate of increase in export supply is not keeping pace with the current import demand, even with the availability of cheaper substitutes. As a result, prices in the Black Sea Basin continue to climb to multi-year highs, creating, in particular, a significant premium spread over the price of Argentine oil – it reached $60-85 per ton during the reporting week.

According to calculations by the German agency OIL WORLD, in July-September 2025, Argentina already increased its sunflower oil exports to almost 0.6 million tonnes from 0.38 million tonnes in the same period last year, driven by record sales to India, whose share of national shipments during the reporting period jumped to 62% from 17% in the previous period. Argentine exporters have long felt more comfortable among their competitors due to the rapid growth in raw material supply in recent years, leading local companies to accept partial discounts. However, more intensive shipments, particularly to large markets (such as India), are being hampered by the pricing environment, which favors soybean oil.

“A reversal in global prices, or even stagnation, will become more apparent closer to the 2026 deals, when Argentine sunflower products from the new harvest will enter the market. For now, due to a shortfall in sunflower seeds in the EU and Turkey (compared to initial forecasts), high volumes of Russian and Ukrainian oil are spreading between these markets, limiting supply for export to other regions. Although demand in China and North Africa remains more elastic this season, buyers are willing to minimize purchases,” note Agroexport analysts.

Tags: Ukraine, Russia, sunflower oil, prices, Black Sea region, India, Argentina