There is potential for sunflower oil prices to rise in the markets

Source:  OleoScope
подсолнечное масло

According to Oil World (Germany), global vegetable oil prices have risen significantly over the past two weeks. In particular, South American soybean oil has risen by about $100/t due to increased export shipments, reflecting changes in demand in many importing countries by reducing the share of palm oil purchases. The situation in the markets led to a reduction in soybean oil discounts relative to palm oil.

Earlier, the tropical oil premium amid record soybean harvests led to price inversion and made palm oil more expensive than soybean oil. Meanwhile, only soybean oil from Argentina is still being offered at discounts for pending contracts, according to the agency.

Sunflower oil prices rose in the EU to $1,245/t FOB on February 19, the highest since the end of January this year. At the same time, sunflower oil purchases are not large at the moment, which temporarily creates a false impression of a rather large supply. Analysts expect an increase in demand, which is not fully satisfied by actual sales, as world oil production will amount to 21.21 million tons, which is 10% below the levels of MY 2023/24, and export supplies will be reduced to 13.75 million tons (14% lower than last season).

Analysts note that sunflower oil may show an increase in value in the near future, as consumers will no longer be able to postpone purchases to meet their needs for March-August.

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