Current Market Overview
DALIAN – The sunflower kernel market has entered its off-season as temperatures gradually rise, leading to a sharp decline in prices. Exporters are actively selling to avoid further price drops, while buyers are purchasing based on immediate needs.
Market Dynamics
Seasonal Decline in Prices
As temperatures increase, the market for sunflower kernels typically slows down. This seasonal trend has led to a noticeable decline in prices. Exporters are eager to sell their stock quickly to prevent losses from potential further price decreases.
European Competition
The European market’s advantage in raw material prices is significantly impacting China’s sunflower kernel export market. The competitive pricing from Europe is putting pressure on Chinese exporters, leading to an intensified focus on sales to move inventory.
Current Pricing
This week, the reference price for confectionary-grade sunflower seeds delivered in Tianjin or Dalian is between $1,200 to $1,230 per tonne. For bakery-grade sunflower seeds, the reference price is slightly higher, ranging from $1,210 to $1,240 per tonne.
Conclusion: Factors Influencing Future Sunflower Kernel Prices
Several factors could determine whether sunflower kernel prices will rise, remain stable, or fall in the coming months:
Seasonal Demand Fluctuations: As the market is currently in its off-season, prices may remain low until demand increases again. Typically, as temperatures rise, demand for sunflower kernels declines, leading to lower prices.
Exporter Strategies: The aggressive selling by exporters to avoid further price drops could temporarily flood the market, keeping prices low. However, once current stocks are reduced, prices could stabilize or increase depending on the balance of supply and demand.
European Market Influence: The competitive advantage of European raw material prices will continue to impact the Chinese market. If European prices remain lower, Chinese exporters may need to adjust their pricing strategies to remain competitive.
Buyer Behavior: With buyers purchasing on an as-needed basis, large bulk purchases are less likely in the short term. This cautious buying behavior could contribute to maintaining lower prices until a shift in demand occurs.
By monitoring these factors, market participants can better anticipate future price trends and make informed decisions in the sunflower kernel market.
Product Name |
Chinese Sunflower Kernel |
| Moisture | 10% max |
| Confection | USD 1200-1230/mt – EURO 1105-1132/mt |
| Bakery | USD 1210-1240/mt – EURO 1114-1142/mt |
| Purity | 99.95% |
| Loading | 17mt /20GP |
| Package | 25kg paper bag |
| Delivery | 20 days after the contract |