Global demand for sunflower oil is growing, but competition between exporters is intensifying

In April, export prices for Ukrainian sunflower oil gradually increased, but not as much as for competing vegetable oils.

According to APK-Inform, the sunflower processing margin in Ukraine has recently decreased significantly due to rising raw material prices. However, the increased competitiveness of sunflower oil on the world market is improving export prospects for Ukrainian processors.

Importers are actively switching from expensive palm oil to cheaper sunflower oil, especially against the backdrop of the increasing use of vegetable oils in biodiesel production.

However, increasing global demand not only improves export prospects for Ukraine, but also intensifies competition with other oil producers, in particular from the Russian Federation and Argentina.

Argentina previously exported sunflower oil for a limited time, but this year, against the backdrop of a record harvest, deliveries will last much longer and may fall during the traditional off-season for Black Sea oil, which will limit seasonal price increases.

In January-March 2026, Ukraine, Argentina, Turkey and the Russian Federation collectively exported 3.3 million tons of sunflower oil, which exceeded the corresponding figure for 2025 by 22%. In March, oil exports from these countries reached a multi-month maximum of 1.29 million tons.

Thus, in March, Argentina increased its sunflower oil exports by 64% compared to February to an 8-month high of 208 thousand tons, of which 70% was purchased by India. Sunflower oil exports from the Russian Federation in March increased by 16% to an annual high of 530-550 thousand tons, most of which were purchased by India and Turkey. Turkey increased its exports in March to a 9-month high of 105 thousand tons, which were delivered to African and Middle Eastern countries.

Despite strong competition in the market, Ukraine increased its sunflower oil exports in March compared to February by 18% to 427 thousand tons, and in April - to the highest level since June 2025 of 442 thousand tons, which were delivered mainly to the EU and Middle Eastern countries.

At the same time, Ukraine's share in total exports in March decreased compared to January from 40% to 33%, and Argentina's share increased from 11% to 16%, while the shares of Turkey and the Russian Federation remained almost unchanged.

The change in the direction of global trade was confirmed by India, which increased its sunflower oil imports by 17% to 1 million tons (according to SEA) in January-April. Almost 52% of this volume was supplied from the Russian Federation, but in the near future, Argentina will significantly increase oil supplies to India. In the first 4 months of the year, the share of Argentine oil in Indian imports increased compared to the corresponding period of 2025 from 7% to 22%, while the share of Ukrainian oil decreased from 23% to 16%.

We can conclude that the sunflower oil market is entering a new phase, when, against the backdrop of increasing demand and competition, price levels, logistics efficiency, and supply stability become decisive for buyers.

Ukraine still has some potential for sunflower processing until the end of the season, but the volumes will depend on the processing margin compared to other oilseed crops.