Sunflower oil prices have fallen from multi-year highs

Sunflower oil futures fell to $1,515 a tonne, retreating from three-year highs reached on February 6, as expanding supplies from South America and easing seasonal demand eased the tight balance in the global vegetable oil market.

Supplies from Argentina are picking up, as Bulgarian processors bought about 400,000 tonnes of sunflower seeds at a competitive price for March delivery, while a record soybean crop in Brazil has reduced supplies of local soybean oil, increasing the choice of cheaper substitutes.

Palm oil futures, meanwhile, fell, preserving palm oil as the cheapest option for large buyers such as India and intensifying competition for market share.

Demand also fell as the Lunar New Year holidays reduced purchases in Asia, and Malaysian palm oil exports fell 11% to 15% in the first half of February, with Ramadan likely to further reduce imports from Middle Eastern countries.

Tags: sunflower oil, prices