Argentina reaches historic record in sunflower exports after 18 years

Published Nov 15, 2024

Tridge summary

The global sunflower market is experiencing a surge in exports, largely due to a shortage in the supply of vegetable oils. This situation has led to increased prices and volumes, with Argentina seeing a 45% rise in sunflower oil prices since the start of the year. Despite a predicted 10% drop in sunflower production for the 2024/25 season, mainly in Russia and Ukraine, Argentina's local sunflower industry has processed 3.2 million tons for the 2023/24 campaign, 70% of which has been exported. Domestic consumption, however, has remained stable. Export commitments for the next season are at their highest in three years, reaching 401,000 tons at an average price of $1,180 per ton.

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Original content

The sunflower market is at a high point, with exports reaching figures not seen since 2006. This phenomenon, driven by an international context of shortage in the supply of vegetable oils, has allowed the country to capitalize on its position in global trade, with a notable increase in prices and exported volumes. The 2024/25 world campaign anticipates a 10% drop in sunflower production, mainly in Russia and Ukraine, countries responsible for 70% of global sunflower oil exports. This contraction, combined with local policies in key markets such as Indonesia and the United States that prioritize the use of vegetable oils in biofuels, has reduced the global exportable balance of vegetable oils. In this context, prices have responded with notable increases. Argentine FOB sunflower oil, for example, has climbed 45% since the beginning of the year, reaching $1,140 per ton, the highest level since February 2023. The local sunflower industry has processed 3.2 million tons so far in the ...

Source: Chacra Magazine