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Global Sunflower Oil Prices Likely to Drop During Mid-Q4:
Global Sunflower Oil Prices Likely to Drop During Mid-Q4:

Global Sunflower Oil Prices Likely to Drop During Mid-Q4:

  • 20-Nov-2023 3:38 PM
  • Journalist: Francis Stokes

Based on current market trends, Farmers, and other industry experts state that Sunflower Oil prices may continue to decline during the entire month of November 2023, providing relief for buyers and traders along with raising questions about the various factors influencing this significant price decrease. The abundance of Sunflower Oil stocks available on the international market is one of the main factors that keep supporting the price drop of Sunflower Oil. In addition to the downward pressure brought on by the United States of America's accelerated harvest progress, other factors that contributed to the current market environment in early November 2023 included improving weather conditions and lingering, restrained purchases of Sunflower Oil from around the world.

Major sunflower-producing regions like Ukraine, and the United States of America have reported a healthy harvest from farmers, and the promotion of premium sunflower seeds has been aided by ideal weather. Because of the bumper crops that have arrived, there is now more Sunflower Oil available, which is easing market pressure and forcing merchants to lower their selling prices both domestically and globally. Furthermore, international trade dynamics have contributed to the ongoing decline in Sunflower Oil prices since the beginning of November, in addition to the previous decline.

Since Sunflower Oil is a commodity that is traded internationally and is subject to significant fluctuations in currency values, logistics operations, and associated geopolitical factors are also anticipated to have an impact on the price changes in the upcoming months.  To further bolster this, cooking oil prices decreased this year at the same time in comparison to last year when the cost of edible oil was high during the Diwali season.  This was caused once more by the constant weaker-than-projected foreign inquiries for soybean, palm, and Sunflower Oil s.

Meanwhile, Sunflower Oil prices further reinforced the negative market forecast for European regions, and it is anticipated that Sunflower Oil prices will fall for the full month of November with inquiries from its main importing regions, particularly APAC, continuing to decline. Due to the higher consumption of edible oils during this season, exporting regions' merchants anticipated a significant increase in demand for these oils well in advance of the festival season. But owing to its reverse effect in the upcoming period merchants may choose to clear their inventories for Sunflower Oil at a lower cost.

In addition, lower Cost of Inputs refers to the fact that input costs, including energy and fertilizers, have decreased recently, relieving producers of Sunflower Oil and lowering the trajectory of prices. In the end, market players anticipate that Sunflower Oil prices will maintain their negative market outlook despite a steady decline in inquiries from the main importing regions. While exporting edible oils, like Sunflower Oil, only happens, when necessary, this could still have an impact on the trade momentum.

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