Global: The Turkish agency TMO canceled the purchase of sunflower oil, which increased the pressure on prices

Published 2023년 3월 1일

Tridge summary

The Turkish state agency TMO has cancelled a tender to purchase 48,000 tons of Russian unrefined sunflower oil due to high prices, while Egypt's GASC purchased a batch at a lower price. Russian sunflower oil prices have fallen to their lowest since July 2021 due to reduced demand. Soybean and palm oil prices are higher than sunflower oil, but their spread remains negative. May futures for soybean oil are expected to fall further due to increased offers from South America. May palm oil futures in Malaysia fell 2% amid lower exports and higher production. The operation of the grain corridor from Ukraine is expected to improve demand and prices for sunflower oil.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Turkish state agency TMO canceled the results of the tender held last week, where 48,000 tons of Russian unrefined sunflower oil were purchased at a price of $1159-1173.8/t C&F, explaining this by high oil prices, although the Egyptian GASC at the same time purchased a batch of sunflower oil at a price of $1,170/t C&F. Against the background of reduced demand, prices for Russian sunflower oil have already fallen to $1,100/t FOB for May delivery, which is the lowest level since July 2021, although prices reached a maximum of $2,350/t FOB on 03/17/22. Soybean oil prices for May delivery are currently $1,120/t FOB Brazil, $1,202/t FOB EU and $1,290/t on the China Dalian exchange, while Dalian palm oil is trading at $1,201/t. Despite the significantly better quality of the spread on sunflower oil relative to soybean and palm oil, it remains negative, but as exports from the Black Sea ports recover, markets will adjust this situation. May futures for soybean oil on the Chicago ...

Source: Graintrade