News

EU sunflower oil prices fell to 3-year lows as soybean oil prices fell

Refined Sunflower Oil
Ukraine
Market & Price Trends
Published Mar 2, 2024

Tridge summary

The European Union is experiencing an oversupply of sunflower oil, leading to a decrease in demand and a drop in prices to a three-year low. This oversupply has also resulted in reduced imports of soybean and palm oil. However, rapeseed oil prices have increased due to a surge in demand for biofuel. Despite the current oversupply, sunflower oil imports are projected to reach a 10-year high of 2.35 million tons in 2023/24. Meanwhile, soybean oil's value is declining as major refiners ramp up soybean processing to meet strong US demand for soybean biodiesel.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Against the background of active supplies of sunflower oil to the EU, its prices in European ports fell to a 3-year low, but this did not lead to increased demand. At the same time, the prices of rapeseed oil became higher than those of sunflower oil for the first time, due to the high demand for biofuel, - reports Agricensus. The blockade of Black Sea ports in Ukraine, tension in the Red Sea and difficulties in the operation of alternative routes led to the fact that large volumes of sunflower oil entered the EU market at very low prices. However, this does not increase the demand for oil, as the EU market is already oversupplied. Another consequence of the supply of cheap sunflower oil from Ukraine to the EU was a reduction in soybean and palm oil imports. According to the European Commission, from July 2023 the import of sunflower oil to the EU increased by 30% to 1.6 million tons compared to the same period of the previous season, with the share of supplies from Ukraine in ...
Source: Graintrade
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