The international sunflower oil market is heavily affected by the war conflicts. Sellers on the Black Sea are forced to adjust their trade flows and look for new export markets after demand from China and other Asian countries, which are major customers, declined. The main reasons for this decline are high inventories, national holidays and increased competition. On the other hand, it should not be forgotten that Russia and Ukraine, the world’s two largest producers and exporters, are exposed to more maritime risks in the Black Sea and now also in the Red Sea.
Transport costs have therefore increased and logistics have become more complex, which means that Black Sea sunflower oil is currently not price competitive. As a result, India has increased its sunflower oil purchases from Argentina to the detriment of Black Sea purchases. According to SEA, between 1 November 2023 and 31 January 2024, India purchased 119,432 tonnes of Argentine sunflower oil, 9670 more than the same period a year earlier. Not only is Argentine oil cheaper than Black Sea oil, but it is also cheaper to get it to India, i.e. about 9020 cheaper. In terms of price, Argentine sunflower oil is on average $20/ton or €18,57/ton cheaper than Black Sea oil. This week, Argentine sunflower oil traded at $910/t €845 CIF India for delivery in February.
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