1. Weekly News

Argentina

Argentina's Sunflower Processing Slowdown Reshapes Global Vegetable Oil Market Dynamics

Despite a forecasted sunflower harvest of 4.8 million tons, an increase of 1 million tons compared to the previous year, Argentina's processing sector has slowed due to the shutdown of major processor Vicentin SAIC. As a result, first-quarter processing dropped 2.5% year-on-year (YoY) to 858 thousand tons, with production increases expected only in the second half of 2025. This decline reduces global competition, strengthening the price position of Black Sea exporters amid tight supply and high prices. The widening spread between sunflower, soybean, and palm oils signals a shift in global vegetable oil price structures.

Eastern Europe

Sunflower Sowing Nears Completion in Eastern Europe Amid Market Uncertainties

By late May-25, sunflower sowing had reached 91% completion in Russia and 93% in Ukraine. Russia significantly expanded its cultivated area to 10.8 million hectares (ha), a 12.5% increase from last year. Ukraine’s progress was slowed by cold, dry weather, though final figures may still match last year’s 5.2 million ha. Meanwhile, Moldova’s stable 430,000 ha crop could yield up to 800,000 tons, half of which may enter the European Union (EU). Within the EU, sunflower production is expected to return to average levels, with Hungary reaching a record area of 746,000 ha due to earlier price hikes. However, recent price drops and uncertain global oil markets cast doubt on future profitability.

Egypt

Egypt Promotes Sunflower Intercropping to Boost Yields and Oil Self-Sufficiency

Sharqia Governorate highlighted the importance of agricultural extension seminars in enhancing crop productivity and supporting farmer livelihoods. A recent seminar organized by the Directorate of Agriculture focused on intercropping sunflowers with other crops such as tomatoes, cucurbits, and young fruit trees, particularly during the summer season. This practice aims to narrow the gap between oil production and consumption. For instance, intercropping sunflowers can help protect tomatoes from sunlight and disease, increasing yields and improving economic returns through more efficient use of land and water resources.

Turkey

Turkey's Surge in Oilseed Imports Driven by Rising Demand and Favorable Market Conditions

In Apr-25, Turkey's sunflower seed imports tripled YoY to 243 thousand tons, mainly sourced from Romania (90 thousand tons), Bulgaria (89 thousand), and Moldova (59 thousand). Cumulatively, imports for Jan-25 to Apr-25 reached 639 thousand tons, a significant rise from 169 thousand tons in the same period in 2024, with Romania, Moldova, and Bulgaria each dramatically increasing their exports. Conversely, Ukraine's shipments dropped to just 1 thousand tons from 40 thousand tons last year. Additionally, Turkey boosted soybean imports in April to 550 thousand tons, reaching a record 1.61 million tons for the first four months of 2025, up 20% YoY, driven by growing domestic demand for vegetable oils and feed, as well as favorable global market conditions.

Ukraine

Ukraine's Sunflower Oil Exports Hit Nine-Year Low Amid Weak Processing and Global Competition

From September to April of the 2025/26 marketing year, Ukraine exported only 3.3 million tons of sunflower oil—a 25% drop YoY and the lowest volume since 2016/17. The decline stems from reduced sunflower processing due to a poor 2024 harvest, weak farmer sales, and unprofitable refining margins. Although the EU remains Ukraine's top market, with minimal competition and accounting for 95% of imports, shipments to the bloc dropped 35%. In Asia, Ukraine lost market share to cheaper soybean oil and sunflower oil from Russia and Argentina. Ukraine’s share in China’s sunflower oil imports fell from 28% to 15%, while Russia held 61%. In contrast, exports to India tripled but still lag behind Russian volumes, which represent over half of India’s sunflower oil imports.

Zimbabwe

Zimbabwe Interested in Importing Belarusian Sunflower Oil

During a meeting at the Belagro-2025 exhibition, held on June 3rd to 7th and showcases innovations in agriculture and food production, Zimbabwe’s Deputy Minister of Agriculture expressed interest in importing sunflower oil from Belarus, recognizing its quality and the efficiency of Belarusian production processes. The discussion with the Belarusian Agriculture Minister highlighted opportunities to expand trade, with sunflower oil identified as a key product alongside ongoing cooperation in other agricultural sectors. This dialogue reflects Zimbabwe’s efforts to strengthen food security and diversify its import sources through closer ties with Belarus.

2. Weekly Pricing

Weekly Sunflower Oil Pricing Top Producers (USD/kg)

Yearly Change in Sunflower Oil Pricing Top Producers (W23 2024 to W23 2025) 

Russia

In W23, sunflower oil prices in Russia declined both week-on-week (WoW) by 0.90% and month-on-month (MoM) by 1.79%, settling at USD 1.10 per kilogram (kg). Despite these short-term decreases, prices remain significantly higher YoY, up 48.65% from W23 2024. The recent declines reflect seasonal market adjustments and improving supply prospects as sunflower sowing reached 91%, with a 12.5% YoY increase in cultivated area to 10.8 million ha. However, underlying structural firmness persists due to tight sunflower seed supply, driven by adverse weather and elevated production costs. Additionally, although the government halved export duties in Apr-25, a simultaneous increase in the reference price tempered any downward price momentum. Strong export demand, particularly to Southeast Asia, continues to lend support to overall pricing levels.

Ukraine

In W23, sunflower oil prices in Ukraine fell by 0.88% WoW and 1.75% MoM, reaching USD 1.12/kg. Despite these short-term declines, prices remain substantially higher YoY, up 49.33% from W23 2024. The recent price drop is attributed to several bearish factors, including nearly completed sowing progress at 93%, though delayed by cold, dry weather. Earlier farmer sales from storage led to a temporary oversupply, pressuring prices. Driven by a poor 2024 harvest, reduced farmer sales, and low refining margins, weak processing volumes also contributed to the downturn. Additionally, Ukrainian exports have lost ground in key Asian markets, particularly China, due to intensified competition from Russian and Argentine oils. High domestic carryover stocks of around 2 million tons and a shift by processors toward rapeseed have reduced immediate procurement demand, while overall export volumes dropped to a nine-year low, with shipments to the EU falling 35% YoY.

Argentina

In W23, sunflower oil prices in Argentina rose by 11.34% WoW to USD 1.08/kg, rebounding from the prior week’s sharp decline driven by harvest-related short-term supply increases that had temporarily eased market pressure. Despite this recovery, prices remain 1.82% lower MoM due to the earlier dip. However, YoY prices are still up 31.71%, reflecting structural market firmness. While the 2025 harvest is projected at 4.8 million tons,  1 million tons higher than the previous year, processing remains constrained due to the shutdown of major crusher Vicentin SAIC. Q1 processing volumes are down 2.5% YoY. This has delayed oil availability until the latter half of the year. Meanwhile, export demand has stayed subdued amid global economic uncertainty, though longer-term price support is underpinned by lingering impacts from earlier poor weather and continued inflation in logistics and input costs.

3. Actionable Recommendations 

Diversify Sourcing Strategies Across Export Hubs

Buyers and import-dependent countries should actively diversify sunflower oil procurement across multiple exporters—such as Russia, Argentina, Moldova, and Belarus—to hedge against supply instability from traditional suppliers like Ukraine. Ukraine’s processing slowdown and export drop has shifted global availability, while Argentina's delayed processing and Turkey's increasing imports indicate shifting trade flows. Sourcing from newer or secondary exporters (e.g., Moldova, Belarus) can reduce overexposure to any single supply region.

Invest in Regional Intercropping and Yield-Boosting Innovations

Governments and agricultural development agencies in oil-importing regions (e.g., North Africa, Sub-Saharan Africa, South Asia) should promote intercropping systems and local sunflower cultivation to reduce external dependence. Egypt’s promotion of sunflower-tomato intercropping highlights a scalable model to maximize land use and oil yields. This could be adopted in similar climates to enhance local production, reduce import bills, and improve food security.

Reassess Oil Mix and Reformulation Strategies in Food Processing

Food manufacturers in Asia, Africa, and the EU should adapt by reformulating products using a blend of sunflower, soybean, or palm oils depending on availability and price trends. Driven by Argentina's processing delay and Russia's export strength, the widening price spread between sunflower, soybean, and palm oils suggests reformulation could reduce costs while maintaining product quality and availability.

Sources: Tridge, Agravery, Elevatorist, Mezohir, Oil World RU, Sharkia, Sinor, Super Agronom, UKR Agro Consult