Russian oil is getting cheaper, increasing competition
After the introduction of Turkey in April this year the fees for the supply of agricultural products, falling prices for sunflower seed in Russia was greatly accelerated.
Now the price has reached the lowest since autumn 2014 level. Due to difficulties with the implementation of sunflower oil processing enterprises to reduce the purchase price of raw materials. The export price for Russian sunflower oil fell $10/MT to the level 695 $/t on FOB basis.
the Main reason for the decline was the reduction in supplies to Turkey, which until recently was considered the main buyer of sunflower oil of Russian origin. Since the beginning of the season, Turkey imported 400 thousand tons of oil, however, since mid-March, the Russian exporters have stopped supplying due to the introduction of fees. According to the Ministry of agriculture, the duty on sunflower oil in Turkey is up to 36% with a minimum customs value of $1,500/ton.
the Demand for Ukrainian sunflower oil is fairly high, so the price is kept at 715-725 $/MT on FOB basis.
In Europe, the price for sunflower oil remains at 780 $/MT on FOB basis Rotterdam.