Ukraine reduced sunflower oil exports by 15% due to reduced purchases by China and India

During September – November, Ukraine reduced exports of sunflower oil by 15% compared to the same period last year to 1.35 million tons due to falling demand from China and India, the Ukroliyaprom Association reported.

In particular, India, which is the main buyer of Ukrainian sunflower oil, reduced its imports during the specified period by 11.5% to 466.5 thousand tons, although in 2020/21 MG it purchased 1.56 million tons of Ukrainian oil, which accounted for 30% of its total exports.

China, which is the second largest buyer of Ukrainian sunflower oil, during the specified period reduced purchases by 50% to 247.1 thousand tons, including 177.8 thousand tons shipped in November.

The main reasons for the drop in demand for sunflower oil were high prices and a shortage of supplies at the beginning of the season, which is why buyers preferred cheaper soybean oil. In China, at the beginning of the season, significant transitional stocks of sunflower oil were formed, so he was in no hurry to buy it. In addition, increased competition from cheaper locally produced corn oil was an additional reason for the reduction in sunflower oil imports.

The decrease in sunflower oil exports from Ukraine to China and India was partially offset by an increase in demand from the EU countries, which in September – November 2021 increased its imports by 26.5% to 366.8 thousand tons.

Under the pressure of falling prices for soybean and palm oil, Black Sea sunflower oil fell in price from грудня 1,400 to F 1,300/ton FOB in December.

However, at the end of last week, palm oil prices rose again by 7% to 4,604 ringgit/ton or 1 1,100/ton, and January soybean oil futures – by 8% to 1 1,260/ton, which will support sunflower oil prices in the near future.

GrainTrade

Tags: export, prices, India, Укролияпром, Ukraine, China, sunflower oil