W15 Sunflower Oil Update: Rising Prices and Increasing Cultivation in Ukraine, Surging Imports in Turkey, and Sunflower Oil Imports in Egypt Expected to Reach 700 Thousand MT

Published 2024년 4월 19일

In W14 in the sunflower oil landscape, Ukraine’s sunflower oil prices increased by USD 15 to 20/mt on April 8, 2024, compared to the price on April 5, 2024, due to the increasing export demand from India. Moreover, sunflower cultivation in the Kirovohrad region of Ukraine is expected to reach a new record of 387.6 thousand ha in 2024 due to its profitability. Furthermore, Turkey has been increasing its sunflower oil imports since Jan-24 due to the decreased local processing. In Feb-24, Turkey’s sunflower oil increased by 85.51% MoM to 128 thousand mt, with Ukraine emerging as the largest supplier. However, the cumulative imports from Sep-23 to Feb-24 declined by 16.5% YoY due to significant domestic reserves. In addition, the country’s exports in Feb-24 increased by 36.73% MoM, with Ethiopia as the leading export destination. The USDA forecasts Egypt’s sunflower oil import to reach 700 thousand mt by the 2024/25 season due to competitive prices and increasing share in blending with soybean oil.

Sunflower Oil Prices in Ukraine Increased by USD 15 to 20/MT

As of April 8, 2024, sunflower oil prices in Ukraine have increased by USD 15 to 20 per metric ton (mt) to USD 810 to 820/mt compared to USD 780 to 790/mt on April 5, 2024. The price increase is supported by the growing export demand from India. In addition, the glocal sunflower oil prices have remained high due to supply pressure.

Kirovohrad in Ukraine Expects Record Sunflower Cultivation in 2024

Due to its profitability, sunflower cultivation in the Kirovohrad region of Ukraine is expected to set a new record of 387.6 thousand hectares (ha) in 2024. The warm weather has already prompted some farms in the area to begin sowing sunflowers. According to the director of the Regional Department of Agro-Industrial Development, Kirovohrad can produce 1.5 million metric tons (mmt) of sunflower seeds and process 2.2 mmt annually.

Turkey Increased Sunflower Imports Due to Reduced Local Processing

Turkey’s sunflower oil imports reached 128 thousand mt in Feb-24, increased by 85.51% month-over month (MoM) compared to 69 thousand mt in Jan-24. Ukraine is the largest supplier, contributing 78 thousand mt in Feb-24. Russia and Romania were ranked second and third, with an import value of 39 thousand mt and 9 thousand mt, respectively. Since Jan-24, Turkey has significantly increased the imports of sunflower oil to compensate for the reduction of its own processing. However, due to significant domestic reserves, the country’s accumulated sunflower oil imports from Sep-23 to Feb-24 decreased by 16.5% year-over-year (YoY) to 491 thousand mt compared to 588 thousand mt in the previous season.

Additionally, Turkey’s sunflower exports increased to 67 thousand mt in Feb-24 compared to 49 thousand mt in Jan-24. Out of the total exports, 15 thousand mt were shipped to Ethiopia, 9 thousand mt to other African countries, and the remaining were exported to Lebanon, Syria, and Saudi Arabia. The sunflower oil exports for the 2023/24 season (as of Feb-24) totaled 379 thousand mt, increasing by 7.9% YoY from the 351 thousand mt in the previous season.

Egypt's Sunflower Oil Imports Expected to Reach 700 Thousand MT by 2024/25 Season

The United States Department of Agriculture (USDA) estimates Egypt’s sunflower oil imports to reach 700 thousand mt by the end of the 2024/25 season due to competitive prices and increasing share in blending with soybean oil. In the 2023/24 season (Oct-23 to Mar-24), the country imported over 483.8 thousand mt of sunflower oil, an increase of 122.54% YoY compared to 217.4 thousand mt in the same period of the last season. Notably, the imports from Ukraine have significantly increased due to competitive prices compared to soybean oil and palm oil.