W9: Weekly Sunflower Oil Update
Ukraine
Domestic Prices for Sunflower Seeds in Ukraine Continue to Decrease
Since the demand for seeds and oil from sunflowers abroad declined, domestic prices for sunflower seeds also decreased. Prices dropped to USD 480-500/MT at the western border, a decrease of roughly USD 20/MT. In the Ukrainian Danube ports, prices range from USD 460-470/MT, FOB. Prices with road delivery to Bulgarian factories range from USD 525-540/MT. With delivery to factories in Hungary at USD 510-520/MT. In the ports of Varna/Constanta, demand prices are in the range of USD 520-540/MT.
USAID Will Provide Sunflower Seeds to Ukrainian Agricultural Producers to Support Food Security
Sunflower seeds and fertilisers for spring and winter crops will be available to small agricultural producers beginning on March 1 as a result of a project run by the USAID Program for Agrarian and Rural Development (AGRO) in collaboration with the Ukrainian Ministry of Agrarian Policy and Food. Till March 14, 2023, applications can be submitted via the State Agricultural Registry (DAR).
Despite the War, Ukraine Retains Global Leadership in Sunflower Oil Exports
In 2022, Ukraine maintained its top spot in the world for non-GMO product exports and supplies of sunflower oil despite the Russia-Ukraine war. The largest and most dependable exporter of sunflower oil worldwide, Ukraine has persisted.
Russia
Export of Oil and Fat Products From the Samara Region in 2022 Increased by 51%
As in previous years, oil and fat products dominate the structure of Samara's agricultural exports. It represented 54.1% of shipments or USD 197.5M which is a 51.1% increase YoY. This commodity group's primary export is sunflower oil, whose supply climbed by 52.4% to reach USD 151.1M.
Analysts Predict a Continued Decline in the Wholesale Cost of Sunflower Seeds in Russia
After a significant increase, the wholesale price of sunflower seeds in Russia in February 2023 fell. This metric is predicted to continue to decline, according to experts. Experts claim that a rise in supply and a drop in demand from processors put pressure on prices. According to government estimates, agricultural firms' stockpiles as of February 1 were at a record 2.8MMT, up from 2.1MMT in 2022. Experts also observed that the demand from processors marginally decreased in contrast to falling export prices, which declined by USD 140 from the start of the current year to February 22 and hit USD 1,040/MT on FOB terms.
Sunflower Prices in Russia Fell for the First Time Since Autumn Last Year
Sunflower prices in Russia started to slip in W9 in the European region for the first time since the fall of 2022, falling by USD 331.08/MT to 384.06/MT (without VAT). Prior to this, starting in November 2022, prices have been steadily increasing. As a result, the domestic market's average price for sunflowers climbed by 39% between November and February, reaching more than USD 384.06/MT. However, oil export prices have decreased recently. In February, they decreased from USD 1,160/MT to USD 1,012/MT. Demand from processors weakened, and some of them began to lower purchase prices.
United States
US Sunflower Oil Usage Breaks Records
In the last six years, the demand for high-oleic sunflower oils and trans-fat-free NuSun has grown significantly in the United States. Consumption has climbed by 66%, from 436M to 725M pounds. Domestic usage is anticipated to continue growing and reach a record 750M pounds in the 2022/23 marketing year. Based on trend-line projections, domestic sunflower oil consumption is expected to grow 5%–10% annually. In the United States, 85% of the sunflower oil produced is sold on the domestic market. Major export destinations for the remaining 15% include Canada, Mexico, and Japan. At 70% of all U.S. exports of sunflower oil, Canada has been the top export market.
Bulgaria
For the First Time in a Year, Sunflower Oil Fell Below Bgn 4/Liter Wholesale in Bulgaria
Sunflower oil's wholesale price dropped below USD 2.18/litre in 2023 for the first time, to USD 2.13/litre. During W9, it decreased in price by USD 0.11/litre. Precisely one year ago, the price of oil began to soar. It was traded on the commodity markets for an average price of USD 1.89 at the start of March 2022. (including VAT). The price has skyrocketed to USD 2.58/litre in just one week.
Bulgaria Follows Its Strategy in the Sunflower Oil Market in 2022/23 Season
One of the Eastern European countries that transit and/or reexports Ukrainian agricultural products is Bulgaria. The domestic output of sunflower crushing and sunflower oil is rising. After the start of the Ukrainian War, the above trends were more pronounced in the previous season of 2022/23. More than 73% of Bulgaria's imports of sunflowers come from Ukraine. Despite the fact that Ukraine and Russia still dominate the markets for sunflowers and sunflower oil, Bulgaria becomes a more significant competitor in these sectors.
Turkey
The Turkish state agency TMO cancelled the results of the tender held in W8, where 48,000MT of unrefined Russian sunflower oil were purchased at a price of USD 1159-1173.8/MT C&F. Russian sunflower oil prices have already dropped to USD 1,100/MT FOB for May delivery, the lowest level since July 2021, despite reaching a high of USD 2,350/MT FOB on March 17, 2022, due to a decrease in demand.
Turkish Grain Board announced tender results for the import of crude sunflower oil
The Turkish Grain Board announced tender results for the import of 48,000MT of crude sunflower oil. The first 18,000MT part of the tender, which will be delivered to the Iskenderun port between the 13th and 18th of March, was won with a bid of USD 1,173.6/MT CNF Iskenderun. An additional 6,000MT of sunflower oil was delivered to the Tekirdag port in the same timeframe and won with a bid of USD 1,159/MT CNF Tekirdag.
The remaining 24,000MT will be delivered to Iskenderun and Tekirdag ports between April 14 and May 14 and the winning tender bids for those deliveries were USD 1,173.8/MT CNF Iskenderun port for 18,000MT and USD 1,159/MT CNF Tekirdag for 6,000MT to Tekirdag port.
Spain
Sunflower Acreage in Navarra Increases by 44%
The total cultivated land of Navarra remained steady in 2022, totaling 324,701 hectares, just 0.03% less YoY. Nonetheless, there is a significant growth in the sunflower area in Navarra, up 44% from 2021, from 4,352 hectares in 2021 to 6,259 hectares in 2022.
Spain’s Aragon Doubled in 2022 the Area Devoted to Sunflower
Both Aragon and all of Spain saw growth in the land area from 13,626 to 26,500 hectares devoted to sunflowers in 2022. Thirty-three percent of the total sunflower area in Aragon has been used for the second planting, which has increased from 2,264 hectares.
India
India Scraps 2023/24 Duty-Free Import Quota on Sunflower Oil
India, the largest importer of vegetable oils in the world, has chosen to eliminate a duty-free import quota of 2MMT of crude sunflower oil for the upcoming fiscal, which begins on April 1. This decision is part of an effort to promote domestic oilseed growers. The action could result in increased imports of palm oil, which previously attracted taxes despite the fact that imports of sunflower oil and soy oil were permitted tax-free under the quota.
