For the Quarter Ending September 2024
North America
In Q3 2024, the North American Sunflower Oil market witnessed a significant surge in prices, driven by a confluence of factors shaping the pricing landscape. The quarter was characterized by heightened demand from key regions, leading to supply constraints and pushing prices upwards. Factors such as disruptions in supply chains, geopolitical tensions, and plant shutdowns further exacerbated the situation, creating a tight market with limited availability.
The USA, being a major player in the market, experienced the most notable price changes, with a substantial 7% increase from the previous quarter. This surge in prices also marked a 16% price difference between the first and second half of the quarter, reflecting the dynamic nature of the market. The quarter culminated in the latest price of USD 1053/MT for Crude Sunflower oil FOB Houston in the USA, underscoring a persistently increasing pricing trend throughout the period.
Overall, the pricing environment in Q3 2024 for Sunflower Oil in North America can be characterized as positively trending, influenced by a complex interplay of global market dynamics.
APAC
Throughout Q3 2024, the APAC Sunflower Oil market experienced a notable price surge, driven by a combination of supply constraints and robust demand dynamics. Weather-related challenges significantly impacted production capabilities, while reduced export availability from major producing regions further tightened market supplies. The strong uptake from various end-user industries, particularly the expanding biofuel sector, played a crucial role in sustaining the upward price momentum.
China emerged as the focal point of market activity, demonstrating consistent price appreciation throughout the quarter. The market registered a substantial 6% increase compared to the previous quarter, while intra-quarter dynamics showed a 4% price elevation between the first and second halves. This steady price appreciation persisted despite operational challenges in the form of plant shutdowns.
The market maintained a bullish sentiment throughout the period, culminating in Crude Sunflower Oil prices reaching USD 1050 per metric tonne CFR Shanghai by quarter-end. This robust price performance underscored the quarter's strong market fundamentals, characterized by tight supply conditions and sustained demand growth across the APAC region's various consumption sectors.
Europe
Throughout Q3 2024, the European Sunflower Oil market demonstrated robust price appreciation, driven by a complex combination of market fundamentals. Supply tightness, coupled with strong global demand patterns, created upward pressure on prices across the region. The market dynamics were particularly influenced by production constraints, which contributed to an increasingly tight supply situation.
Ukraine emerged as the epicenter of market activity, experiencing significant price volatility and recording a notable 7% increase compared to the previous quarter. The market's resilience was evident as it maintained its upward trajectory despite operational challenges, including periodic plant shutdowns. Seasonal factors further amplified the price momentum, contributing to the overall bullish market sentiment.
The persistent supply constraints and sustained demand levels resulted in Crude Sunflower Oil prices reaching USD 970/MT FOB Chornomorsk in Ukraine by quarter-end. This price performance reflected the quarter's robust market conditions, characterized by supply limitations, heightened demand, and overall positive market sentiment across the European region's Sunflower Oil sector.
For the Quarter Ending June 2024
North America
Sunflower oil pricing in North America experienced a notable surge in Q2 2024, primarily driven by a confluence of supply chain disruptions, increased downstream demand, and escalating input costs.
The market dynamics were significantly influenced by persistent supply constraints, driven by low inventory levels and heightened demand from both regional and overseas markets. Additionally, geopolitical tensions and environmental challenges compounded the supply issues, further propelling prices upwards. The ongoing war in key producing regions severely disrupted supply chains, leading to higher transportation costs and longer lead times, creating a challenging environment for importers thereby affecting the overall pricing landscape. Focusing on the USA, which witnessed the most significant price fluctuations, the overall trend reflected a robust upward trajectory. Seasonality played a crucial role, with warmer-than-average spring temperatures driving up storage costs and impacting the pricing chart, and keeping the overall product prices on the northerly direction.
Furthermore, the correlation between increasing prices of other edible oils and sunflower oil was evident, as market participants anticipated continued price hikes. The prices when compared the first quarter were substantially high, reflecting a 9% increase. Hence, the quarter concluded with a price of USD 950/MT for crude sunflower oil, marking the end of a period characterized by a strong positive pricing environment.
Asia Pacific
The second quarter of 2024 witnessed a notable surge in Sunflower Oil prices across the APAC Region. This upward trend was driven by a complex interplay of factors, creating a dynamic and robust market environment. Demand for Sunflower Oil expanded beyond traditional markets, with non-conventional consumption areas showing increased interest. This oil's cost advantages over alternative edible oils further bolstered its appeal, contributing to the price escalation. Concurrently, persistent supply chain disruptions, particularly in the Black Sea region, exerted significant influence on the market. The global increase in freight charges added another layer of complexity to the supply constraints, collectively shaping the trading atmosphere across the region. China emerged as a focal point of this trend, with its Sunflower Oil pricing environment showing particular strength. This was primarily fueled by robust demand from downstream sectors, including food processing and biodiesel production. The appreciation of the US Dollar against the Chinese Yuan further amplified import costs, exerting additional upward pressure on prices. Seasonal factors, combined with vigorous procurement activities and limited inventories, intensified the existing demand-supply imbalance. The quarter saw a remarkable 9% price increase compared to the previous quarter, with Crude Sunflower Oil closing at USD 1025/MT. This substantial price movement underscores a consistently positive pricing sentiment throughout the quarter. It paints a picture of a Sunflower Oil market in the APAC region that is not only dynamic but also operating under considerable strain, balancing strong demand against persistent supply challenges.
Europe
The European Sunflower Oil market experienced a notable upward price trend during the entire second quarter of 2024. This surge was driven by a combination of supply constraints and strong demand, creating a dynamic and bullish market environment. Several key factors contributed to this price increase. Adverse weather conditions, including excessive rainfall and frost, significantly impacted crop yields, particularly in Ukraine, a major producer. These weather-related challenges reduced the availability of sunflower seeds for processing, tightening supply. Simultaneously, geopolitical tensions, most notably the ongoing Russian invasion of Ukraine, severely disrupted supply chains, leading to increased production costs and decreased output. The market was further influenced by global factors such as rising freight costs and restrained sales from producers who anticipated even higher future prices. Interestingly, the attractive pricing of Sunflower Oil compared to other vegetable oils like palm and soybean oils stimulated substantial import demand, especially from the Asia-Pacific region. Ukraine, as a focal point of these market dynamics, witnessed the most significant price changes. The ongoing sowing season coincided with tightened seed availability, further exacerbating the supply-demand imbalance. This resulted in a substantial increase in procurement costs and, consequently, Sunflower Oil prices. The quarter saw a 9% price increase compared to the first, reflecting the persistent supply-demand imbalances and heightened market sentiment. By the end of Q2, the price for Crude Sunflower Oil in Ukraine reached USD 945/MT. Overall, the Q2 2024 pricing environment for Sunflower Oil in Europe was decidedly positive, characterized by significant price increases and a bullish market outlook. This trend was driven by a confluence of adverse supply-side factors, sustained high demand, and additional disruptions caused by geopolitical tensions and logistical challenges.
For the Quarter Ending March 2024
North America
In Q1 2024, the Sunflower Oil market in North America experienced a significant decline in prices with mixed trajectory. The price rose considerably in January while plummet suddenly in February and rebounded steadily as march concludes the quarter.
Starting with January, the the notable rise in Sunflower Oil prices in January 2024 stems from increased downstream demand, driven by efforts to replenish inventories amid growing advocacy for biofuels sectors. Furthermore, in response to increased demand, market participants raised prices to boost profitability thereby selling the goods relatively at a higher cost than projected. Also, Geopolitical tensions and trade disruptions complicated market sentiment, causing export challenges and increased shipping costs. In February, prices sharply declined due to weaker trade quotations from neighbouring markets and a shift towards competitively priced products from other countries, especially in the European market. Furthermore, the FAO Food Price Index averaged 117.3 points in February, down 0.7 percent from January and 10.5 percent from the same month last year. The FAO Vegetable Oil Price Index decreased by 1.3 percent from January, standing 11 percent below its February 2023 value. International Sunflower oil prices notably dropped due to expectations of ample global export supplies.
Lastly, with march ending the quarter, prices rebounded modestly, driven by rising costs of other vegetable oils globally. However, merchants grappled with surplus Sunflower oil supply, sufficient to meet demand downstream. With this strategic price adjustments to maximize profits amidst a strong US dollar, concerns linger about potential price increases due to Mississippi River bottlenecks caused by weather conditions. Addressing potential delays and associated costs is crucial to avoiding trade disruptions and export delivery halts. As a result, market participants in the US have escalated inquiries to exporting nations, further amplifying the upward pressure on prices. In conclusion, The latest quarter-ending price for Crude Sunflower Oil FOB Houston in the USA was USD 840/MT.
Asia Pacific
The pricing environment for Sunflower Oil in the APAC region during Q1 2024 has experienced a downward trend, with prices declining by more than 1 percent compared to the previous quarter of the last year. However, there has been a slight increase in prices towards the end of the quarter. Initially until the middle of the Q1 the price demonstrated an overall downward trend. The decline stemmed from various factors, including reduced demand for vegetable oil, particularly in major markets like China, and an oversupply of Sunflower Oil. China's significant imports of competing oils from Ukraine and Russia, coupled with lower exporting costs from these regions, also played a significant role. Ukrainian and Russian suppliers deliberately lowered prices, enabling Chinese market players to adjust their pricing strategies to stay competitive within the market. Furthermore, the Red Sea trade dispute has disrupted supply chains, causing delayed deliveries and port congestion, which affected Sunflower Oil (SFO) prices. Chinese buyers hesitated to procure SFO from affected regions due to higher freight costs despite lower trading prices.
Additionally, the strengthening US dollar made import opportunities more expensive for Chinese buyers, contributing to price fluctuations and a downturn in the market trajectory. However, as quarter progressed towards the end of the quarter, the sunflower oil market has displayed steady rise in its prices. This was supported by the prices rise in revival oils including the soybean and palm oil. Furthermore, with reduced freight costs and increased downstream consumption of Sunflower oil, traders in the region actively recoverd previous losses by selling off their inventories at higher prices, aided by the devaluation of the Yuan against the dollar. Overall, the pricing environment for Sunflower Oil in the APAC region during Q1 2024 has been challenging, marked by a downward trend influenced by weak demand, oversupply, currency fluctuations, and logistical challenges. Consequently, the quarter-ending price for Crude Sunflower Oil CFR Shanghai in China at the end of March was recorded at USD 893/MT.
Europe
The Sunflower Oil market in Europe experienced a challenging first quarter of 2024, with prices declining significantly. Several factors contributed to this downward trend. The global market conditions, including the decreasing prices of other edible oils such as palm and soybean oil, played a crucial role in the decline of Sunflower Oil prices. These oils serve as substitutes for Russian sunflower Oil, and their abundant availability put competitive pressure on Sunflower oil prices. Additionally, Reduced demand from key importers like India, China, and Turkey, alongside decreased biofuel consumption and weakened purchasing sentiment, led to a negative pricing environment for Sunflower Oil. Similarly in Ukraine, the largest producer in Europe, prices steadily declined from the previous quarter. Producers across the Black Sea region faced considerable pressure as prices for processed products sharply declined until February. This decline was attributed to light demand from major destinations, particularly in the Asia-Pacific (APAC) region. In response to these market dynamics, sellers have been compelled to adjust prices accordingly in order to be competitive within the market as prices from neighbouring nations such as Russia also declined.
However, as March commenced, Ukrainian Sunflower oil exports surged due to a modest regional consumption rebound and heightened interest from importers seeking cost-effective alternatives amid rising palm oil prices. Additionally, Egypt's notable increase in Sunflower oil imports signals a potential shift in global vegetable oil consumption patterns, boosting demand and potentially impacting prices. The increased exports of oil to Egypt from Ukraine and Russia stand to benefit their respective economies as Euro devaluated against the dollar by 0.57 percent thereby benefitting the Ukraine and Russian trades to clear their stocks at max. profits. Overall,
In Q1 2024, Sunflower Oil prices in Russia and Ukraine saw a negative trend, declining consistently due to global market factors and weakened demand. Crude Sunflower Oil prices ended the quarter at USD 813/MT FOB Chornomorsk in Ukraine and USD 800/MT FOB Novorossiysk in Russia, reflecting the persistent downward trend.
For the Quarter Ending December 2023
North America
Throughout the fourth quarter of 2023 in the North American region, Sunflower oil prices displayed a varied trajectory. Initially, at the start of October 2023, prices continued to decrease across the region. The FAO Vegetable Oil Price Index also saw a 0.7 percent decline in October from the previous month. Moreover, factory employment witnessed a decline, reversing the improvement seen in September, with the employment gauge dropping from 51.2 to 46.8. The situation was further complicated by the peak harvesting season, primarily in Ukraine, a major exporting region, from September to early November 2023.
This period was expected to bring a surge in sunflower oil supplies, resulting in a notable price drop in importing nations. Sunflower oil, being a cost-effective choice compared to other edible oils like palm and soybean oil, remained an attractive option for biodiesel production in various regions. This trend persisted until the final weeks of December, but prices rebounded moderately in the middle of the fourth quarter, supported by a moderate rise in downstream purchasing activity, balanced with sufficient stocks among merchants.
Additionally, a global shortage of shipping containers and congestion at major ports caused delays and significantly increased transportation costs, making the export of sunflower oil more expensive. This, coupled with other factors, ultimately led to a spike in prices for consumers. The uncertain global economic situation and concerns about future supply shortages triggered speculation and increased price volatility in the sunflower oil market, further contributing to the overall price surge. While navigating through the dynamics of the market for its downstream end-product, Sunflower Oil, which exhibited a combination of organization and fluctuation, the supply of downstream products proved to be ample, catering to the overarching influx of inquiries, and contributing to a noticeable decline in the transaction volume within the market as December marks its end.
Asia Pacific
In the APAC region, Various factors shaped the Sunflower Oil market and influenced prices throughout the fourth quarter of 2023. Initially, a global surplus of sunflower oil resulted from a record harvest in Ukraine, leading to ample availability and lower prices at the beginning of October 2023. Subsequently, reduced consumer spending impacted demand for sunflower oil, affecting sectors like the biofuel industry, while other vegetable oils such as soybean and rapeseed gained popularity. While the importing regions experienced significant changes in prices as November concludes. On the demand side, terminal demand improved with bullish support, propelling the Sunflower oil market on an upward trajectory, marked by a substantial influx of imported Sunflower. Although pressure on the constrained sunflower oil inventory persisted, the supply side saw excessive availability among domestic merchants, supported by favorable trade momentum. As the fourth quarter neared its end, the rise in prices was influenced by both logistics challenges and high destination stockpiles affecting sunflower oil imports. Increased congestion at ports, shipping delays due to rerouting activity caused by trade disruptions in the Red Sea, and delayed consignments slowed the arrival of sunflower oil shipments in December, resulting in temporary shortages and price fluctuations until supply caught up. Likewise, a continuous influx of new quotations from regional markets contributed to a price increase aimed at stabilizing the market trajectory, lasting until the final weeks of December 2023.
Europe
The entire fourth quarter of 2023 witnessed a volatile trend in the pricing of Sunflower Oil in the European region, influenced by various factors. Firstly, the ongoing war in Ukraine disrupted supply chains and transportation, impacting the availability of Sunflower Oil in the market. Secondly, the arrival of the harvesting season increased the supply of sunflower seeds, exerting downward pressure on prices. Lastly, the appreciation of the Euro against the US dollar resulted in higher export prices for goods, including Sunflower Oil in October 2023. In Russia, a major exporter of Sunflower Oil, these factors significantly influenced the market situation. Market players gradually lowered purchase prices, causing a consistent drop in Sunflower Oil market prices. High yields and favorable exchange rates led farmers to have a surplus of crops for international markets, increasing the supply of sunflower seeds and subsequently decreasing sunflower oil prices. Additionally, economic factors and the increased availability of other edible oils affected the demand for sunflower oil from key importers. Contrary to this, in November 2023, Sunflower oil prices experienced a substantial increase, marked by a complex situation involving input cost inflation slowing, signs of stabilization in exchange rates, easing output cost inflation, and optimistic sentiment amid rising new orders. Inflation in Russia accelerated in November, reinforcing expectations of a central bank interest rate hike. Lastly, by December 2023, FOB prices of Sunflower Oil from Russia underwent a substantial downward trajectory in Europe. This decline aligned with global market dynamics, including falling prices of palm and soybean oil, which globally impacted sunflower oil prices. The substitution effect of palm and soybean oil as cheaper alternatives in various applications, coupled with general expectations of lower prices in major vegetable oil markets, contributed to a downward trend in sunflower oil prices. Overall, the pricing of Sunflower Oil in the European region during the fourth quarter of 2023 remained fluctuating.potentially influencing Brazilian prices. Facing the continuous price surge, some farmers hesitated to sell their 2023 corn harvest, anticipating further price increases in the future. With this, the latest price of Maize (Corn) in Brazil for the current quarter is USD 227/MT in Brazil.
For the Quarter Ending September 2023
North America
Across North America, Sunflower Oil prices followed an upward trend until August but experienced a drop as September came to a close. In the United States, the price of sunflower oil surged by approximately 10% in July due to uncertainties surrounding exportable supplies after the Russian Federation discontinued the Black Sea Grain Initiative. This decision complicated supply-demand dynamics both domestically and internationally, exacerbated by dry weather conditions in the US, which impacted regional trading activities. The increase in vegetable oil prices strained household budgets, causing difficulties for consumers to find the products they needed, especially with sunflower oil being utilized in the biofuel industry. Furthermore, the Manufacturing Purchasing Managers' Index (PMI) for the United States showed positive growth, rising from 46.3 in June to 49 in July, indicating expansion in the manufacturing sector for the second consecutive month. The Consumer Price Index (CPI) for July 2023 in the United States was 305.69. Additionally, rising energy prices in the US, partly caused by sanctions on Europe that complicated oil and gas imports from Russia, led to higher fuel costs for consumers. These sanctions also disrupted global supply chains, making it challenging for businesses to acquire necessary goods and services, consequently raising consumer prices. However, the FAO Vegetable Oil Price Index averaged 120.9 points in September, a decrease of 5.0 points (3.9 percent) from August, marking the second consecutive monthly decline. This decline was influenced by lower world prices in palm, sunflower, soy, and rapeseed oils. International palm oil prices continued to decrease, primarily due to elevated production in major Southeast Asian countries. Meanwhile, world sunflower oil quotations significantly dropped, reflecting harvest pressure in the Black Sea region amid robust selling activities by farmers.
Asia Pacific
Sunflower oil prices experienced a continuous rise throughout July, primarily due to Russia's decision to withdraw from the UN-backed agreement. This move, which also impacted grain prices, created uncertainties and led to significant increases in sunflower oil prices globally, including in China. The limited availability of sunflower oil for biodiesel production further elevated its prices, making biodiesel production more costly and contributing to the overall upward price trajectory. Market analysts noted a substantial increase in vegetable oil consumption, supporting the rise in sunflower oil prices during the month. In contrast, export orders in China decreased, falling below the contraction threshold at 46.3, as reported by the Statistics Bureau and the China Federation of Logistics & Purchasing, leading to a decline in the Chinese Consumer Price Index (CPI) for July. However, August was expected to witness a CPI increase, primarily due to higher spending on services and increased food prices. The official China NBS Manufacturing PMI also exceeded market expectations, rising from 49.3 in July to 49.7 in August 2023, driven by growing inquiries from both domestic and foreign industries. Additionally, the depreciation of the Chinese yuan against the US dollar contributed to higher imported sunflower oil prices, making the product more expensive for Chinese consumers. As September 2023 approached, sunflower oil prices witnessed a significant decline. While the decrease in sunflower oil prices benefited consumers, making the product more affordable, it posed challenges for producers by reducing their profit margins. Moreover, the economic slowdown in China, which began to show signs of improvement in September, led to a decrease in consumer spending.
Europe
As of the third quarter of 2023, the Ukrainian market for sunflower oil experienced a volatile trend. Sunflower oil prices surged in July due to escalating concerns about grain exports from Ukraine and global production uncertainties. Russia's exit from the Black Sea Grain Initiative complicated grain and vegetable oil shipments from Ukraine, leading to an increase in sunflower oil prices. This had a significant impact on consumers worldwide, given the popularity of sunflower oil in cooking. Despite these challenges, July's export data showed Ukraine still managed to export substantial amounts of vegetable oil. Despite the sector's rapid deterioration, there was a slight improvement in optimism in August. Factory employment declined for the third consecutive month, prompting businesses to reduce inventories by cutting back on purchases. Input costs significantly dropped, and output prices continued to decline for the fourth month in a row. Additionally, the ongoing trade war increased transportation costs, including fuel expenses, further contributing to the rise in sunflower oil prices both internationally and within Ukraine. The conflict also heightened challenges in securing ships for goods transport through the Danube River. Moving towards the end of September, sunflower oil consumption remained weak throughout the month, with market transactions primarily driven by specific requests. However, compared to the previous month, sunflower seed exports increased by twofold in September, although they remained low compared to the same period the previous year.
For the Quarter Ending June 2023
North America
Across the North American region, the prices of Sunflower Oil depicted a similar market trend as that in Europe throughout the second quarter of 2023. As the prices for Sunflower Oil went down since the start of the year 2023, market sources stated that the downtrend in prices would continue through this quarter due to high stocks of sunflower oil across the region, sufficient supply of European buyers and the abolition of export duties owing to Russian halt in black sea grain deal continuing to put pressure on the market as the exports from Ukraine one of the major producer reduced. Besides this, on average, the dip in the prices for Sunflower Oil until the end of June was more than 7 percent. Moving towards the termination of June, another factor that supported the weakened price trend included the change in climatic conditions, which further affected the import momentum. Besides this, Economic concerns such as rising interest rates also weighed on Sunflower Oil prices as higher energy prices and a slight increase in refinery inventories weighed on market sentiment across the North American region. With this, the prices of Sunflower Oil in the United States were settled at USD 840/MT FOB Houston in June. Sunflower oil used in biofuel industry
Asia Pacific
Sunflower Oil prices across the APAC region, primarily in the Chinese market, demonstrated a decremented trend during the second quarter of 2023. Edible oil companies have decided to reduce prices of cooking oil after witnessing a consistent drop since the beginning of 2023 in order to destock their higher stockpiles and prepare for new stocks. However, in the month of May, the prices for Sunflower oil dropped more than anticipated and were even lower than palm oil which shifted the consumer's attention towards it. Owing to this, the merchants started buying more sunflower oil in comparison to others as it was available at cheaper rates. Additionally, another factor that resulted in a drop in the prices for vegetable oils includes the Russian halt in the black sea grain deal, continuing to put pressure on the market as the exports from Ukraine, one of the major producers, reduced, which in turn affected the supply of edible oil across the globe, China one of the importers of vegetable oil from Ukraine. With this, the prices of Sunflower oil in China were assembled at USD 930/MT CFR Shanghai
Europe
With a consistent decline in prices, the market of sunflower oil ended the second quarter of 2023 on a bearish note. Ukraine, considered one of the major exporters of vegetable oil, is offloading a lot of vegetable oil in the global market at a lower price than usual. The beginning of the summer months (i.e., May to August) has been marked by a steep decline in the value of sunflower oil for FOB Black Sea Ukraine delivery, as this 60-day extension of the Black Sea Grain Initiative, which was confirmed on May 18 did not provide any relieve in downward prices of sunflower oil prices, as the European market remained heavy on stocks purchased on a prompt basis prior to the deal's renewal. Moreover, moving towards the termination of the second quarter, various market analysts reported that in June, the processing of sunflower oil mills in Ukraine dropped for the second consecutive month, below the May indicator, and became the lowest monthly result ever since the start of the current harvest season. Due to the rainfall during June and July, soybean oil prices further fluctuated on the south side amid the abundance of global exportable supplies among the merchants. With this, the prices for Sunflower Oil in Ukraine were settled at USD 755/MT FOB Chornomorsk IN Ukraine while USD 765/MT FOB Novorossiysk in Russia.
For the Quarter Ending March 2023
North America
Sunflower oil prices declined in North America during the first quarter of 2023 as a result of decreased market sentiment and low market from the downstream sectors. The price of sunflower oil decreased in the first half of Q1 as a result of a decline in local retailers' demand. As a result, the cost of oil decreased in the local market. Sunflower oil is no longer in high demand from consumers. Also, Canada had been the principal destination for US sunflower oil imports, but as Canadian demand for the product plummeted, the price of the commodity dropped sharply. Throughout the second half of Q1 2023, prices continued to fall as a result of lower inflation and improved supply from European countries. The product's price reduction in the first months of the quarter caused a rise in inventories, which in turn caused the commodity's price to decline. Prices decreased in the last month of the quarter as a result of merchants having enough commodities in hand. The price of Sunflower oil for FOB Houston (USA) in March 2023 was reported to be USD 1085/MT around the conclusion of Q1 2023.
Asia-Pacific
During the first quarter of 2023 in the Asia Pacific region, Sunflower oil prices declined due to the low inflationary pressures with the prices of food, petrol, and crop nutrients. Prices fell in the first quarter as a result of zero-covid regulations being adopted throughout the Chinese market, which opened the door for a seamless domestic supply chain and steady demand from end-user businesses and local dealers. Sunflower oil prices fell in the second half of Q1 as a result of the product being predominantly imported from the European region. The markets were also seeing easy seed production, which further eased the supply concerns. The price of Sunflower oil for CFR Shanghai (China) in March 2023 was estimated to be USD 2285/MT around the end of Q1 2023.
Europe
The prices of Sunflower Oil in Europe decreased throughout the first quarter of 2023. The price of the good has since dropped as a consequence of the sizable amount of inventories in the domestic market. The manufacturers had to reduce the price because the product was made in excess. As a result of numerous prohibitions that have been approved in its primary importing countries, the price of the good has considerably decreased in its home market. Even though the domestic market has a sizable need, there is enough inventory to satisfy customer demand. Prices kept dropping because producers had to increase sales of sunflower oil because there were massive inventories in the second part of Q1 2023. Towards the end of Q1 2023, the price of Sunflower oil was recorded to be USD 1030/MT for FOB Chornomorsk (Ukraine) in March 2023.
For the Quarter Ending December 2022
North America
Sunflower oil prices fluctuated in North America during the fourth quarter of 2022 due to erratic market sentiment and shifting market dynamics from the downstream industries. Due to a drop in local merchants' demand in the first half of Q4, the price of Sunflower Oil fell. This caused the price of Sunflower Oil in the local market to fall. The consumer demand for Sunflower Oil has substantially reduced. Additionally, Canada had been the main import market for US Sunflower oil, but the commodity price fell dramatically due to a decline in Canadian demand. The price continued to rise in the second half of Q4 2022 as a result of increasing inflation and a disrupted supply from European nations. The commodity's price increased due to the product's steady decline in the quarter's earlier months, which reduced the amount of inventory. Prices declined during the final month of the quarter due to sufficient inventory held by the merchants. The price of Sunflower oil for FOB Houston (USA) in December 2022 was reported to be USD 1321.2/MT around the conclusion of Q4 2022.
Asia-Pacific
The price of Sunflower Oil fluctuated in the Asia Pacific region during Q4 2022 as a result of fighting against intense inflationary pressures with prices of food, gasoline, and crop nutrients. Prices rose in the first part of Q4 as a result of a rise in Covid cases across the country and rising demand from end-user companies and residential families. Due to the fact that Sunflower Oil is primarily imported from the European region, prices for the product rose in the second half of Q4. Additionally, the markets were experiencing extreme heat waves and droughts, which destroyed the seeds and reduced production, further tightening the supply concerns. The price of Sunflower Oil for CFR Shanghai (China) in December 2022 was estimated to be USD 2365/MT around the end of Q4 2022.
Europe
Throughout the fourth quarter of 2022, Sunflower Oil prices in Europe varied. As a result of the substantial amount of inventories on the domestic market, the product's price has since decreased. The product was produced in excess; therefore, the manufacturers had to lower the price. The cost of the good has significantly decreased in its native market as a result of many prohibitions that have been approved in its main importing nations. Although there is a sizable domestic market need, there is enough inventory to meet consumer demand. Due to the producers' need to boost the price of the items since Sunflower Oil was scarce in the second half of Q4 of 2022, prices were continually going up. Towards the end of Q4 2022, the price of Sunflower Oil was recorded to be USD 1075/MT for FOB Chornomorsk (Ukraine) in December 2022.
For the Quarter Ending September 2022
North America
In North America, Sunflower oil prices fluctuated during the Q3 of 2022 due to mixed market sentiments and fluctuating market dynamics from the downstream industries. In the first half of Q3, the price of Sunflower Oil decreased owing to the decreased demand from local traders, which declined the price of oil in the local market. Sunflower Oil demand has decreased drastically from the consumers' end. In addition, Canada had been the leading importer destination of US sunflower oil, and demand from Canada decreased, which significantly decreased the price of the product. In the second half of Q3 2022, the price remained upward because of rising inflation and disrupted supply from European countries. The price of the commodity increased due to a consistent decrease in the price of the product in the previous months of the quarter, which has led to a decrease in the level of inventories. Towards the end of Q3 2022, the price of Sunflower Oil was recorded to be USD 1805/MT for FOB Houston (USA) in September 2022.
Asia-Pacific
In the Asia Pacific region, the price of Sunflower oil fluctuated during Q3 2022 owing to battling severe inflationary pressures, with prices of food, fuels, and crop nutrients. In the first half of Q3, the prices decreased due to the Indian government exempted customs duty and agriculture infrastructure growth tax on 20 lakh metric tonnes yearly import of sunflower oil to ease domestic price, for the exemption which would help to control inflation and surging local costs of food. In the second half of Q3, the prices for Sunflower Oil increased due to the lack of availability of the product in the domestic market backed by poor cultivation. The markets were suffering from severe droughts and heatwaves, which devastated the seeds, and the quantity of production lowered, further tightening the supply concerns. Towards the end of Q3 2022, the price of Sunflower Oil was recorded to be USD 1945/MT for Ex Chennai (India) in September 2022.
Europe
The price of Sunflower Oil in Europe decreased during the Q3 of 2022, and the product's price has fallen because of the considerable number of inventories on the domestic market. Because there was an excess of the product, the manufacturers had to reduce the price. Due to several bans that have been approved in its primary importing countries, the price of the commodity has plummeted in its home market. Despite the substantial domestic market demand, there is ample inventory to satisfy consumer demand. In the second half of Q3 of 2022, the prices consistently decreased due to the manufacturers having to lower the price of the goods because there was an abundance of them. The price of the commodity has decreased in its home market because of some bans being sanctioned in its main importing nations. Towards the end of Q3 2022, the price of Sunflower Oil was recorded to be USD 1705/MT for FOB Pivdennyi Russia in September 2022.
For the Quarter Ending June 2022
North America
In North America, Sunflower oil prices increased during the Q2 of 2022 due to rising demand from the downstream industries. In the first half of Q2, the price of Sunflower Oil increased owing to the Russia-Ukraine war, which elevated the price of oil in the domestic market. Sunflower Oil demand has increased drastically from consumers' end. In addition, Canada had been the leading importer destination of US sunflower oil, and demand from Canada increased, significantly increasing the product's price. In the second half of Q2 2022, the price remained upward because of rising inflation and disrupted supply from European countries. Towards the end of Q2 of 2022, Sunflower oil prices accelerated to USD 2059/MT on a FOB basis during June 2022.
Asia-Pacific
In the Asia Pacific region, the price of Sunflower oil decreased during Q2 2022 due to severe inflationary pressures, with prices of food, fuels, and crop nutrients in the first half of Q2 due to the Russia-Ukraine war invasion as India imports edible oil majorly from European countries. Due to war, the prices of edible oil increased. In addition, in the second half of Q2, the Indian government exempted customs duty and agriculture infrastructure growth tax on 20 lakh metric tonnes yearly import of sunflower oil to ease domestic price, for the exemption which would help to control inflation and surging local costs of food. Towards the end of the quarter, Sunflower oil prices were observed to be USD 2345/MT Ex-Chennai (India) during June 2022.
Europe
The price of Sunflower Oil in Europe increased during the Q2 of 2022 due to the Russia-Ukraine war in the country. In the first half of Q2, the price increase is backed by the following reasons: Ukraine is the world's biggest sunflower oil exporter, but the Russian invasion has made farming, producing, and shipping difficult, pushing global prices and triggering rationing in some countries. In the second half of Q2, Ukraine's main problem was driving their product to the border, as the closest border is more than 620 miles away, and there was a fuel shortage in the country. Towards the end of the quarter, Sunflower oil prices were observed to be USD 2140/MT FOB Chornomorsk (Ukraine) during Jun 2022.
For the Quarter Ending March 2022
North America
In North America, sunflower oil prices remained on the upper side due to various factors such as increasing covid cases, Russia Ukraine war crisis, etc. With the termination of the first half of the Q1, the prices increased gradually owing to the resurgence of Covid and the labor shortage. Due to the climate crisis, the harvest was poor due to a supply shortage of sunflower oil. Bullish downstream agricultural demand from other countries surged sunflower oil prices in the US market. Towards the end of Q1 2022, sunflower oil price accelerated to USD 1491/ton FOB Houston. With the onset of the second half, the war crisis had already hindered the transportation which increased the prices in the domestic market.
Asia-Pacific
Sunflower oil prices in the Asia Pacific region increased rapidly in the first quarter of 2022. Sunflower oil manufacturing units have been hampered by various factors, including Russia's Ukraine invasion, climate crisis, and Covid resurgence. At the beginning of this year, the increased cases of covid led to lockdown imposition in several parts of Asian countries. Consequently, the supply chain was hindered, leading to increased freight charges. Supply shortage with accelerating demand primarily affected the sunflower oil prices in the Asian market. The Russia Ukraine invasion hit the sunflower oil supply towards the end of February. Both Russia and Ukraine are the major sunflower oil manufacturers and exporters to Asian countries, leading to the global supply crisis. Towards the end of the quarter, the prices of sunflower oil were observed to be USD 2280/ton CFR Shanghai in China.
Europe
By the end of this quarter, the sunflower oil prices witnessed an upsurge in the European market. In the first half of the quarter, the resurgence of the Covid case slightly affected the market due to a shortage of labor, and the prices remained on the higher side. With fluctuating supply/demand equilibrium, the sentiments led to upward fluctuation in the sunflower oil. The onset of the second half of the Russia Ukraine war affected the market, globally. With the termination of the Q1, the prices were recorded to be USD 1943/ton FOB Chornomorsk in Ukraine. This war led to the halt of major sunflower oil manufacturing plants affecting the production rate and supply. The shipments were also restricted further, resulting in a supply shortage.
