Turkish TMO purchased 18,000 tons of sunflower oil at a high price that will support markets

According to Reuters, the Turkish State Grain Exchange (TMO) on Thursday pre-purchased about 18,000 tons of crude sunflower oil in an international tender, as planned.

According to European traders, the entire volume was purchased from Aves, including about 12,000 tons for delivery to the ports of Iskenderun/Mersin at a price of $1,336.5/ton C&F (including cost and freight), and another 6,000 tons for delivery to the port of Tekirdag at a price of $1,344/ton C&F. Purchases at TMO tenders are preliminary and subject to further confirmation, as they may be reduced or even completely canceled. The reports reflect traders' estimates, and additional estimates of prices and volumes are possible in the future. The oil is scheduled for delivery from November 3 to 28. The tender could also include batches already in customs warehouses in Turkey. Traders note that the sunflower harvest in Turkey this year turned out to be lower than expected, which necessitated imports to stabilize prices and ensure sufficient supplies.

Such a high tender purchase price will support the high level of sunflower oil prices in the Black Sea region, although traders expected a slight decrease in prices this week following the decline in palm and soybean oil quotes.

Demand prices for Russian sunflower oil this week are declared at $1,170/t FOB for delivery in November, although prices for sunflower oil in Ukraine have risen to $1,230–1,240/t for delivery to Black Sea ports in October.

Prices for sunflower oil for delivery to India in October remain at $1,300-1,310/t C&F amid falling palm oil prices.

November palm oil futures on Bursa Malaysia fell another 2.5% since Monday, but recovered 1% yesterday, down 1.5% for the week to 4,520 ringgit/t or $1,070/t, as they were supported by a 12-16% increase in exports in the first half of October (according to surveyors).

December soybean oil futures on the Chicago Board of Trade traded at $1,120/t (-1.8% month-on-month) during the week, not receiving strong support from Trump's threats to restrict imports of refined oil from China, but more in response to the lack of confirmation of the Administration's plans to increase quotas for biofuel production in the US for 2026-27.

The fall in oil prices has not yet had a significant impact on vegetable oil prices, but the gradual increase in the supply of rapeseed oil in the EU and Canada and sunflower oil in the Russian Federation, Ukraine and Kazakhstan at the end of the year could significantly shake the market, especially if demand decreases.