Reduction of sunseed tariffs in Turkey will lead to lower sunflower oil prices in the Black Sea region

The Turkish government has reduced import duties on sunflower seeds from 20% to 12% and on crude sunflower oil from 36% to 30%, amid forecasts of a record sunflower harvest in Russia and plans to increase oil processing and production in Turkey.

These changes, which will come into effect on October 1, 2025, are aimed at supporting the Turkish vegetable oil sector and increasing the competitiveness of local producers. The duty reduction will also help stabilize domestic prices and increase import volumes, in particular from the Russian Federation.

This government policy will stabilize or reduce sunflower oil prices in Turkey, increase the margins of processors, and strengthen the country’s position as a major importer of sunflower and crude oil, as well as an exporter of refined sunflower oil in the Black Sea-Mediterranean region.

Demand prices for Russian sunflower oil for August delivery remain at a high level of $1,160-1,170/t FOB, but prices for September-October deliveries remain at $1,135-1,140/t FOB.

Export demand prices for sunflower oil in Ukraine for delivery in August remain at maximum levels of $1,170-1,200/t, but prices for the new crop are also lower and are $1,150-1,160/t with delivery to Black Sea ports.

In August, demand prices for sunflower oil delivered to India reached $1,300-1,310/t CIF Mumbai (although in July they were at $1,210-1,230/t) due to a supply shortage from the Black Sea region and rising palm oil prices.

The start of harvesting the first batches of sunflower in southern Ukraine and the Russian Federation is already increasing supply and reducing prices, as processors are reluctant to buy large batches of expensive sunseed at the start of the season, expecting further price declines.

October palm oil futures on Bursa Malaysia were little changed during the week and are trading at 4,488 ringgit/t (about $1,063/t) as the pace of palm oil exports from Malaysia declines towards the end of the month, although in 25 days of August they are 16% higher than the corresponding figure in July.

December soybean oil quotes in Chicago remain under pressure from the uncertainty of the Trump Administration’s biofuel policy for 2026-27 and the lack of an agreement with China, so at the end of last week they rose by 7.4%, and since Monday they have fallen by 4% to $1,172/t (-5.3% per month).

Oil prices also remain under pressure from uncertainty over Russian supplies. They rose after Ukraine attacked Russian refineries and have now been supported by the US raising tariffs on Indian goods as punishment for India’s decision to continue buying Russian oil. High oil prices will continue to support vegetable oil prices.

October Brent crude futures rose 3% to $68/barrel for the week (-2.2% for the month) and are set to continue rising due to a decline in US inventories. According to the EIA weekly report released on Wednesday, US crude inventories fell by 2.39 million barrels, compared with expectations for a decline of 2.0 million barrels, while distillate inventories unexpectedly fell by 1.8 million barrels, compared with expectations for a rise of 500,000 barrels.

Tags: prices, Black Sea region, duties, Ukraine, sunflower oil, Turkey