US: Rising demand drives global sunflower oil market despite the ongoing price rally

A recent report by IndexBox on the global market for sunflower-seed and safflower oil reveals significant trends and forecasts. The report highlights a doubling of sunflower oil prices over the past year due to increased demand and limited sunflower seed stocks, though prices are expected to stabilize with increased production in 2021. Despite dry weather reducing global sunflower production by 9% in 2020, demand for sunflower oil remains stable, supported by food oil and biofuels consumption.

The report projects a 14% increase in global exports of sunflower oil in 2021, with the EU, China, India, Iraq, and Turkey being the main importers. It also anticipates a 4% increase in global sunflower oil production in 2021, driven by expanded harvested areas and favorable weather expectations. The largest consumers of sunflower-seed and safflower oil in 2020 were Russia, India, and China, accounting for 37% of global consumption.

Ukraine emerged as the leading exporter of these oils, followed by Russia and the Netherlands. Despite challenges such as labor shortages and the EU ban on palm oil, the global oil crops market is expected to continue its growth.