Sunflower Oil Falls Short

Ukraine and Russia are the top 2 producers of sunflower oil globally. The war has taken its toll, with combined production hovering around 10 million MT. Leading to a massive shortage, the sunflower oil prices have spiked significantly, by almost 40% in the last 3 weeks. Most of the current stock is booked for and until August 2022. Any new requirements and edible oil orders are on hold and cannot be catered to. This has created a backlog and gap for edible oil in the global markets.

In this scenario, again, manufacturers and distributors from Turkey and Argentina are aiming to step in to provide some ease by opening up allocation to existing and new requirements with a higher margin than the cost of producing the sunflower oil. However, the elevated price for edible oil is expected to continue for at least a few months.