Argentina: Sunflower oil faces high competition

Published 2024년 5월 23일

Tridge summary

Argentina's 2024/25 sunflower oil stocks are projected to be lower, with a expected decrease in production leading to a reduction in economic receipts by 46%. The country's sunflower oil and meal exports are also expected to see a decline, contrasting with a global trend of increased sunflower oil trade. The global leader in sunflower oil trade, Ukraine, saw a significant increase in exports in the 2023/24 season. Meanwhile, Russia is also increasing its production of sunflower oil, which could lead to record exports in the current season. Ukraine has been losing its traditional sunflower oil markets and has been focusing exclusively on Europe, while the lost markets are being taken over by Russia.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Argentina would begin the 2024/25 campaign with lower stocks of sunflower oil compared to the previous season. For now, the reduction in prices of the complex, together with the drop in production, would determine that the Argentine economy will receive 46% less in 2023/24 compared to the previous season, with a total of USD 1,186 million, according to local estimates. It would also contribute USD 292 and 921 million in terms of tax collection and exports, falling USD 196 million and USD 659 million compared to the previous cycle. According to the forecasts of the USDA Foreign Agricultural Service, at the beginning of the new campaign, which will soon begin in the north of the country, Argentina will have around 224 thousand tons of this vegetable oil, compared to 265 thousand tons in 2023/24 and 282 thousand tons in 2022/23. Regarding sunflower oil production, it is expected to decrease to 1.5 million tons from 1.63 million tons in the previous year. In the same context, export ...

Source: Infobae