According to the ChemAnalyst data, the prices of sunflower oil in Russia saw a modest uptick during the first half of May 2025, continuing the stable increase from April. The price increase was primarily due to supply issues and high input costs, particularly the notable increases in sunflower seed prices. These factors have squeezed processing margins and have further reduced processing output, tightening the availability of sunflower oil in the domestic and export markets.
In April sunflower seed prices in Russia grew faster than export prices, squeezing margins and export profitability. This imbalance led some processors to cut back and volumes declined. The reduced output combined with sector wide financial pressure pushed prices up. According to the FAO international sunflower oil prices in April were above year ago levels mainly due to reduced availability from the Black Sea region, the main global export hub.
Domestically, inflationary pressures added to the cost burden. Russia's Consumer Price Index rose by 10.3 percent year over year in April, indicating widespread cost escalation across the supply chain. Although the Russian Ministry of Agriculture revised its sunflower oil export duty structure, the intended relief from reduced FOB values was largely offset by an increase in the production prices, limiting the measure’s impact on domestic pricing. Additionally, the depreciation of the US dollar against the Russian ruble has weighed on export competitiveness, prompting price recalibrations to safeguard profitability.
On the demand side, domestic consumption of sunflower oil remained steady in April with food and processing industries continuing to use it consistently. While exports to India decreased, trade with China picked up with April imports from Russia reaching around 265,000 tons. The Russian government’s reduction in export duties also revived interest from international buyers but high raw material costs continued to restrict processing. So, the supply and demand gap remained wide and prices went up.
According to market sources, sunflower oil prices are expected to go up in second half of May 2025. During the sowing season, traders will release their stocks at premium prices. Higher sunflower seed prices are increasing overall cost of production and putting pressure on processors. If production constraints continue and affect sunflower oil output which is Russia’s main vegetable oil export, global buyers will start looking for alternative sources and that will push international export prices up further.
