Sunflower Oil Prices in Sweden Have Stabilised as Ukrainian Oil Flows Through Europe

Vegetable oil prices in Sweden, particularly sunflower oil, have stabilised. Positions on major sunflower oil contracts in W39 have remained at around USD 1.08-1.18/L in Eastern Europe. Large quantities of crude and refined oil have made their way out of Ukraine, filling several major stocks and resulting in stable prices. Price reductions on store shelves were observed in several European countries during September, suggesting a degree of caution and belief in a period of calm. Major price differences still exist in the market as there is a great need for different calibres of sunflower oil among buyers. At the same time, there are several retailers who are left without oil when smaller players can offer their own new brands.

Many market players are anxious to see what will happen in the near term in Ukraine. The major questions are whether the war will escalate and continue and whether the export corridor through the Black Sea will remain open after the initial Russia-Ukraine agreement expires in mid-November. The future is uncertain but speculation suggests that a price increase is on the horizon.