Aggressive Sunflower Oil Exports from Black Sea Region and Argentina
Countries like Russia, Ukraine, and Romania in the Black Sea region, along with Argentina, are aggressively selling sunflower oil. This competition is driving down global market prices. Providing Indian importers with an incentive to purchase large quantities at low prices. Argentina primarily supplies India with soya oil, while Russia, Ukraine, and Romania are the main sources of sunflower oil imports.
Russia Overtakes Ukraine in Sunflower Oil Exports to India
Russia and Ukraine together contribute nearly 70% of the global sunflower oil exports, with a significant focus on the Indian market. Previously, India imported most of its sunflower oil from Ukraine, but Russia has recently taken the lead. In the first 23 days of June, approximately 320,000 tonnes of imported sunflower oil were cleared through various Indian ports.
During the last marketing year, India imported an average of 250,000 tonnes of sunflower oil monthly, mostly from the Black Sea region. It is projected that imports could reach an all-time high of 500,000 tonnes for the entire month of June 2024. This substantial volume will take time to refine and release into the domestic market. Historically, the highest import of crude sunflower oil in India was 461,458 tonnes in January 2023, a record that June 2024 is expected to surpass.
Short-term Abundance and Long-term Market Adjustments
The anticipated record imports of sunflower oil in June could lead to a temporary reduction in imports in July due to the time required for refining and distribution. Mainly crude sunflower oil is imported into India. And the record imports in June may result in decreased imports in the following month. This significant influx could temporarily saturate the market, affecting domestic prices and refining timelines.
Conclusion
In summary, the fierce competition among Russia, Ukraine, and Argentina to dominate the Indian sunflower oil market is driving down global prices, benefiting Indian importers. The substantial imports projected for June 2024 may set new records and influence the market dynamics in the short term. Traders and producers should monitor these trends to anticipate potential market adjustments and opportunities.