1.Weekly News

India

India’s Sunflower Oil Exports Surged by 74% MoM in May-24

India's edible oil imports rose by 15% month-on-month (MoM) to 1.5 million metric tons (mmt) in May-24. In particular, the sunflower oil imports surged by 74% MoM to 408 thousand mt, with an average import price of USD 1033 per metric ton (mt). The main reason for the increased sunflower oil imports was the port congestion in Apr-24, which led to delayed unloading in May-24.

Ukraine

Ukraine’s Sunflower Oil Exports Increased by 13.7% MoM in May-24

Driven by strong demand from India and Spain, Ukraine's sunflower oil exports in May-24 increased by 13.7% MoM to 714.3 thousand mt, the highest level since Nov-20. Additionally, Ukraine experienced a surge in sunflower seed prices in May-24, reaching their highest level since Apr-22, driven by seasonal stock depletion and limited supply. The depreciation of the hryvnia against the United States (US) dollar also exerted considerable influence on pricing dynamics.

Ukraine’s Sunflower Seed Prices Exceeded USD 423/mt in Jun-24

Ukraine's sunflower seed prices exceeded USD 423.23/mt at the beginning of Jun-24. Due to limited stocks, processing plants are willing to buy at even higher prices. Ukraine's sunflower oil exports in Jul-24 and Aug-24 are expected to decrease due to anticipated reducing global demand, with only 620 mt signed for delivery in May-24.

2.Weekly Pricing

Weekly Sunflower Oil Pricing Top Producers (USD/kg)

Yearly Change in Sunflower Oil Pricing Top Producers (W23 2023 to W23 2024)

Russia

Sunflower oil prices in Russia increased by 2.22% week-on-week (WoW), reaching USD 0.92 per kilogram (kg) in W23. Despite the price increase, Russia still provides the most price-competitive products compared to Ukraine and Argentina. Ukraine's tight supply of raw materials boosted Russia's exports, particularly to the Chinese and Indian markets. However, given the fluctuating palm oil prices and expected demand decline in Jul-24 and Aug-24, the price will likely stabilize.

Ukraine

In W23, Ukraine's sunflower oil prices remained stable at USD 0.93/kg after a significant increase in W22. The strong export demand for sunflower oil led to a rise in sunflower seed prices in the country. During W22, sunflower seed prices increased by 6.1% WoW. However, the price declined by 2.3% from June 3 to June 5, 2024, due to decreased palm oil prices.

Argentina

Sunflower oil prices in Argentina increased by 3.26% WoW to USD 0.95/kg, which is 3.27% higher than in Russia and 2.15% higher than in Ukraine. The price increase is supported by a declined sunflower seed production forecast for the 2024/25 season and surging global prices due to tight supply in Russia and Ukraine.

3.Actionable Recommendations

Optimize Import Logistics

India should streamline its import logistics for edible oils to prevent delays like the port congestion experienced in Apr-24. This could involve upgrading port infrastructure, implementing advanced tracking systems, and enhancing coordination among port authorities to ensure timely unloading and distribution of imports.

Enhance Export Infrastructure

To sustain the growth in sunflower oil exports, Ukraine should invest in its export infrastructure, particularly in enhancing storage and transportation facilities. This will help manage the seasonal stock depletion and ensure a steady supply to meet international demand.

Increase Production Efficiency

Argentina should focus on increasing production efficiency to manage the forecasted decline in sunflower seed production for the 2024/25 season. Investing in advanced agricultural technologies and training farmers on best practices can enhance yield and product quality.

Sources: UkrAgroConsult, Agrotimes, Sinor