The Eastern New Year and falling palm oil prices are putting pressure on sunflower oil prices in the Black Sea

Refined Sunflower Oil

Turkiye

Market & Price Trends

Published Feb 14, 2024

Tridge summary

Sunflower oil sellers in the Black Sea region are seeking new markets as demand from Asia decreases due to large inventories, New Year celebrations, and competition from soybean and palm oil. China has reported large stocks of sunflower oil, while India has shifted its purchases to Argentina due to increased freight costs from the Black Sea following Houthi attacks on Red Sea ships. The narrowing price difference between soybean oil and sunflower oil is making soybean oil more attractive. This decrease in demand from Asia has led to an increase in sunflower oil supplies to Turkey and the EU.

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

Black Sea sunflower oil sellers are forced to look for new buyers as demand from Asian countries falls amid heavy inventories, New Year celebrations and increased competition from soybean and palm oil, Agricensus reports. China reported large stocks of sunflower oil and India increased its purchases of sunflower oil from Argentina after the cost of freight from the Black Sea rose due to Houthi attacks on ships in the Red Sea. According to the SEA agency, in November - January, India increased the import of Argentine sunflower oil compared to the same period of the previous year by 70% to 119,000 tons, although it is inferior in quality to Black Sea oil. However, the cost of freight from Argentina to India is $83-90/t, which is 20% less than the freight from the Black Sea region, which reaches $100-120/t CIF India. At the same time, Argentine sunflower oil is on average $20/ton more expensive than Black Sea sunflower oil. According to SEA data, in January the import of vegetable ...

Source: Graintrade