Ukraine continues to increase the rate of sunflower oil export

In December 2023, the export of sunflower oil from Ukraine increased by 25% compared to November to 672,000 tons, which became the largest monthly indicator since January 2022 and the second largest December export volume of this oil in the entire history of Independence. About 25% of the exported oil was purchased by Romania, and 12% by Turkey.

In general, in September - December 2023, Ukraine exported 2 million tons of sunflower oil, which is 4% higher than last year's rate.

It is worth noting that in Rudne prices for Ukrainian sunflower oil fell against the background of falling prices for palm and soybean oil. However, the decrease in prices and the recovery of exports through the Black Sea ports increase the demand for Ukrainian oil.

World demand prices for sunflower oil with delivery to customers during the week fell by another 3% to $820/t (-10% for the month). In Ukraine, purchasing prices for soybean oil for the month fell by $60-70/t from $800-820/t to $720-750/t for deliveries to Black Sea and Danube ports and to $780-820/t for deliveries to Bulgaria.

March soybean oil futures on the Chicago Stock Exchange fell 5.5% to $1,065/t for the month amid improved weather conditions in South America and soybean harvest forecasts.

March palm oil futures on Bursa Malaysia fell 7.5% for the month to 3,621 ringgits/t, or $782/t, under pressure from lower export rates.

The activation of demand for cheap Ukrainian oil will support its prices in the near future, but from March, the supply of soybean oil from Argentina and Brazil and palm oil will increase on the market, so the fight for buyers and pressure on prices will intensify.