Prices for sunflower oil are rising, despite the lack of factors of support
After the formal withdrawal of Turkey's trade restrictions to products of the Russian export prices for sunflower oil increased by 5-15 $/t to 710 $/t FOB. The price increase observed for the first time since December of 2016.
For the first 7 months of the current season, Russia exported 1.3 million tons of sunflower oil, which was a record figure for the specified period and 1.3 times higher than exports for September 2015 – March 2016, when it was sold 0.96 million tonnes. Turkey's share in the export of Russian oil is about half.
According to the USDA forecast, in 2016/17 season exports of sunflower oil of Ukrainian production will amount to 5.1 million tons, or nearly 56% of the total world exports of 9.11 million tons.
Growth in April manufacturing and exporting Malaysian palm oil to 1.5 million tonnes against 1.3 million tonnes in the same period of the previous year continued to put pressure on the markets of soybean and sunflower oil. Besides, palm oil is becoming more attractive for importers due to the reduction of price premiums for soybean oil.
Demand from China supported prices of soy oil at the level 731 $/t in the U.S. and 740 Euro/ton in Europe.
In Europe, sunflower oil due to the growth of markets for soy and palm oil has risen in price by 10-15 $/t CIF Rotterdam made 795-800 $/t
In Ukraine over the last week the sunflower oil on FOB basis rose by $5/MT to 730-735 $/t for deliveries in June-August. The strengthening of prices for sunflower oil led to higher purchasing prices for sunflower on 100 UAH/t on all bases.