Sunflower oil price growth is limited by uncertainty on global markets

According to Trading Economics, the average price of sunflower oil for delivery to customers for the week increased by 2.7% to 1345 $/t (+3.9% for the month) amid stronger demand, reduced supply from Ukraine and the rise of the Euro against the dollar, which improved the demand prices from EU buyers.

In the black sea ports of Ukraine, export prices for sunflower oil during the week increased by 10-20 $/t to 1080-1100 $/t, but further growth is limited by strong competition with Russian oil, the supply of which is increasing.

For the first 5 months of MY 2024/25, Russia increased exports of sunflower oil by 26% to 2.34 million tons. The largest buyers were India (1.04 mln tonnes) and Turkey (435 thsd tons).

India’s intention to increase the duty on imports of vegetable oils increase uncertainty in the markets and reduce speculative demand for oil.

Malaysia during 1-15 February reduced the export of palm oil products compared to the same period in January by 12.3-19,9% amid declining demand from India, which increased pressure on the quotes.

the April futures for palm oil on the Bursa exchange in Malaysia for the week fell by 1.1% to 4542 ringgit/t or 1022 $/t, but in General for 2 weeks rose by 4% amid the lowest in 21 months of oil reserves in the country.

March futures for soybean oil on the Chicago stock exchange for the week rose 0.7% to 1015 $/t, which corresponds to the level of the previous month, but remain under pressure from the uncertainty of Trump’s decisions on biofuels and the introduction of duties.

Oil prices remain stable, but they may decline in the event of successful negotiations between the US and Russia over the war in Ukraine, which will lead to the easing of sanctions against Russia and increase oil supplies. Falling oil prices will reduce the prices of palm and soybean oil, which are used in the production of biodiesel.

Tags: Ukraine, sunflower oil, prices