The Prices of Sunflower and Oil Make Nerves and Go Down

Sunflower Oil Price Surge Offset by Palm Oil Price Decrease

Mintec Global
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Rising Sunflower Oil Prices in Ukraine

In Ukraine, the heightened demand has driven sunflower oil prices. It is up by $15-20/t, reaching $800-815/t with delivery to Black Sea ports, $840-950/t with delivery to Bulgaria, and $890/t with delivery to Italy. This surge in prices comes in response to increased importers’ interest in the more affordable sunflower oil, particularly against the backdrop of rising palm oil prices.

Unicaps Sunflower seeds

Impact of Palm Oil Price Decrease

Conversely, palm oil prices declined due to forecasts of decreased oil prices. This decline is attributed to easing tensions in the Middle East. Notably as Israel withdrew some troops from the southern Gaza Strip. In Malaysia, May palm oil futures dropped by 2.5% in three sessions.

With Ramadan celebrations winding down after April 9, Malaysia’s plantation workers are gearing up for increased production. Thus, market veterans consider this as a hopeful sign for the palm oil industry. Yet, there is a sense of anticipation mixed with uncertainty. As the Palm Oil Board of Malaysia delays its report until April 15. This move leaves stakeholders waiting anxiously for insights into future market trends.

Soybean Oil Price Trends

May soybean oil futures on the Chicago Stock Exchange decreased 2.2% to $1,055/t. It is driven by weak US exports and an influx of cheap soybeans from South America. This pressure on soybean prices contributes to the complexities of influencing global edible oil markets.

In the same vein, Egypt is poised to double its sunflower oil imports in 2023/24 compared to the previous season, from 350,000 to 700,000 tons. This shift is driven by favourable pricing and its widespread utilization in blending with soybean oil for subsidy programs. Notably, Egypt imported 483.8 thousand tons of sunflower oil from October to March 2023/24 MY. Significantly exceeding the 217.4 thousand tons in the corresponding period of MY 2022/23. This surge in imports can be attributed to increased supplies from Ukraine and the Russian Federation, offering sunflower oil at more competitive prices than soy.

In conclusion, the sunflower oil market in Ukraine reflects a delicate stance of demand and pricing influenced by global trends. While rising prices indicate heightened interest in sunflower oil in the middle of increasing import demand, the decrease in palm oil prices presents a contrasting scenario. The anticipated rise in production post-Ramadan in Malaysia offers hope for the palm oil industry. Additionally, the downward trend in soybean oil prices and Egypt’s significant increase in sunflower oil imports highlight the complex interplay of factors shaping the global edible oil market.