1. Weekly News

Global

Global Sunflower Oil Prices Dropped by 2.2% WoW in W26

According to online data company Trading Economics, the average price of sunflower oil fell by 2.2% week-on-week (WoW) to USD 913 per metric ton (mt) in W26. However, based on a monthly comparison, the price increased by 1.5% month-on-month (MoM). Participants in the VegOils & Meals Trade conference agreed that sunflower oil prices will remain stable in the short term. At the same time, an agricultural commodities broker at Sunstone Brokers predicts that in Jul-24 crude sunflower oil price may drop USD 20/mt, ranging from USD 960 to 980/mt, including cost, insurance, and freight (CIF) to Mersin and USD 1,000 to 1,025/mt CIF to India. Further price trends will depend on weather conditions and yield prospects.

Russia

Tambov Region's Sunflower Oil Exports Surged by 30% YoY in 2024

From Jan-24 to May-24, Russia's sunflower oil exports in the Tambov region increased 30% year-on-year (YoY) to USD 16.9 million, with Turkey, Uzbekistan, and China emerging as the leading buyers. By the end of 2023, the Tambov region had entered the top 5 in the Central Federal District in vegetable oil production, with exports increasing by 4% YoY. The Tambov regional government aims to increase the share of high-value products in exports.

India

India Purchased Record 500 Thousand MT of Sunflower Oil

India bought a record 500 thousand mt of sunflower oil for Jun-24 delivery. This purchase was driven by intense competition between Ukraine and Russia, leading to lower sunflower oil prices than palm and soybean oil. Due to the large quantity purchased, the Indian industry will take time to process it. As a result, the Jul-24 purchases are expected to be lower. India's previous sunflower oil imports record was in Jan-23, totaling 461.45 thousand mt.

Spain

Spain’s Sunflower Oil Sales Surged While Olive Oil Sales Declined

According to the Spanish National Association of Edible Oil Bottlers and Refiners Industrialists (Anierac), Spain’s sunflower oil sales increased by 24.5% YoY to 158.57 thousand mt from Oct-23 to Mar-24, compared to 127.4 thousand mt in the previous season. In contrast, the country’s olive oil sales dropped by 17.5% YoY. This change was due to competitive sunflower oil prices and surging olive oil prices. According to market research firm NielsenIQ, Spain’s retail olive oil prices rose by 61% YoY in May-24, reaching an average of USD 8 per liter (l) (EUR 7.41/l), while sunflower oil prices dropped by 35% to USD 1.68/l (EUR 1.56/l).

2. Weekly Pricing

Weekly Sunflower Oil Pricing Top Producers (USD/kg)

Yearly Change in Sunflower Oil Pricing Top Producers (W26 2023 to W26 2024)

Russia

In W26, Russia’s sunflower oil prices declined by 2.11% WoW to USD 0.93 per kilogram (kg) due to ample supplies and intense competition from Ukraine and Argentina. Russia's sunflower oil production in the 2023/24 marketing year (MY) is expected to reach a record of 7.55 million metric tons (mmt), an increase of 13.5% YoY. As a result of the expected production growth, sunflower oil exports are projected to rise by 14.3% YoY to 4.59 mmt. Despite the competitive market, Russia continues to offer lower prices compared to Ukraine and Argentina.

Ukraine

In W26, Ukraine's sunflower oil prices decreased by 1.05% WoW to USD 0.94/kg. This price drop was due to the high sunflower seed production in Ukraine and Russia for MY 2023/24, leading to increased global competition and lower prices. In addition, the global sunflower seed production for MY 2024/25 is expected to rise 1% YoY, according to the United States Department of Agriculture (USDA). Experts from the VegOils & Meals Trade conference anticipate the price will remain stable in the short term.

Argentina

Argentina’s sunflower oil price remained stable at USD 0.97/kg in W26. Competitive soybean oil prices have led to strong demand globally, especially from the European Union (EU) and India, with India’s imports reaching a record high in Jun-24. Given the competitive market, Argentina’s sunflower oil price will likely remain at the current level.

3.Actionable Recommendations

Implementing Weather-Resilient Strategies

Global producers should adopt weather-resilient farming strategies to stabilize sunflower oil prices amid fluctuating weather conditions. This includes investing in advanced meteorological systems to predict weather patterns better and prepare accordingly. Enhancing irrigation infrastructure and using drought-resistant sunflower varieties can help mitigate adverse weather impacts on yield. Promoting sustainable agricultural practices will also ensure a more consistent production level, reducing volatility in global sunflower oil prices.

Enhancing Export Value and Market Position

Russia should focus on increasing the share of high-value sunflower oil products in its exports to enhance profitability and market position. Investing in refining and value-added processing facilities will enable the production of premium sunflower oil products. Establishing stronger trade relationships and exploring new markets will diversify export destinations and reduce dependency. These measures will help Russia capitalize on its record production levels and boost its export value.

Optimizing Import Processing and Storage

India should implement strategies to efficiently process and store its record sunflower oil imports to avoid potential bottlenecks. Enhancing the capacity of processing facilities and improving logistics infrastructure will ensure smooth handling and distribution. Additionally, diversifying import sources to include a mix of short-term and long-term contracts can help manage supply levels and mitigate the risk of sudden price fluctuations. These steps will ensure a stable supply of sunflower oil in the domestic market.

Sources: GrainTrade, MilkNews,Elevatorist, UkrAgroConsult,Oilworld