The Turkish agency TMO canceled the purchase of sunflower oil, which increased the pressure on prices
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, the markets will adjust this situation.
May soybean oil futures on the Chicago Stock Exchange fell 5% to $1,322/t last week (-1.7% for the month), and will continue to decline in the coming months under pressure from increased South American supplies.
May palm oil futures in Malaysia fell 2% to 4,142 ringgit/t, or $923.5/t yesterday, after rising last week, amid lower exports and higher palm oil output in February.
According to inspection company AmSpec Agri Malaysia, Malaysia saw a 0.4% drop in palm oil exports in February compared to January, although exports picked up sharply at the beginning of the month. According to estimates by the Southern Peninsula Palm Oil Producers Association, during February 1-25, production increased by 17% compared to January.
The continuation of the operation of the grain corridor from Ukraine will improve the planning of shipments and allow the return of buyers of sunflower oil from China and India, which will support demand and prices for it, especially against the background of reduced supply in the second half of the season due to the reduction of sunflower production in Ukraine.
