World prices for vegetable oils continue to rise and only sunflower oil is “unlucky”

At the end of the third week of the war in the Middle East, the global vegetable oil market is moving differently. Palm, soybean and rapeseed oils are growing, while sunflower is not. This was reported by Sunstone Brokers Managing Partner Serhiy Repetsky in a comment to Latifundist.com.

In recent weeks, palm oil has risen in price by about $30/t, rapeseed oil by $30–40/t in Europe, and soybean oil is showing high volatility along with oil. At the same time, sunflower oil is not repeating this trend.

“Only sunflower oil is not lucky, it is not so lucky. Its prices have not yet reached the top, but on the contrary, despite the growth of freight rates on the destinations, buyers are pretending that nothing has happened. Prices have increased by $5-7/t in Turkey and India, and have even fallen in European ports,” says Repetsky.

Additional pressure is being created by competition from Argentine sunflower oil, which in May-June is trading at a discount of about $30/t to Black Sea oil on the Indian market, Repetsky adds.

According to him, the main reason for the weak dynamics is the shift in demand towards cheaper oils. Trading activity also remains low: in India it is below average, and in the EU it is almost non-existent. Only the Turkish market has recently shown some activity.

Tags: sunflower oil, prices