US Sunflower Oil Prices Show a Downward Trend at the End of Q2 2023
US Sunflower Oil Prices Show a Downward Trend at the End of Q2 2023

US Sunflower Oil Prices Show a Downward Trend at the End of Q2 2023

  • 28-Jun-2023 3:40 PM
  • Journalist: Jacob Kutchner

As the second quarter of 2023 ends in June, the prices of Sunflower Oil decline at a continuous rate across the North American region. A certain factor for the decline in Sunflower Oil prices was the war in Ukraine, which has already disrupted the global supply chain activity of various commodities, including the vegetable oils such as Sunflower Oil. Ukraine is a major Sunflower Oil producer, and the war has prevented the country from exporting its oil.

Another factor supporting the downward price trend is the continued global surplus of exportable oil and seeds amid weak demand. Further, in support of that, other importing countries such as China and India focused on clearing their previous stockpiles. This has increased the global supply of Sunflower Oil, putting downward pressure on prices. In addition, prices of other vegetable oils have also decreased recently. This further supported Sunflower Oil's downward price trend, which changed consumer interest.

In the United States, this fall in Sunflower Oil prices is expected to be good news for consumers to some extent, as buyers can easily find the product at a lower price. Market participants may start stockpiling excess inventories ahead of a surge in demand from the local market as Sunflower Oil, also used for cooking and baking, rises. Moreover, given market developments in June, prices may remain low, and imports from Ukraine and Russia may slow slightly. Besides this, Economic concerns such as rising interest rates also weighed on Sunflower Oil prices as lower crude oil prices and a slight increase in refinery inventories weighed on market sentiment across the North American region.

Apart from the United States, the prices of Sunflower Oil are projected to remain weak in Europe and the APAC region. Downstream Sunflower Oil supplies have increased steadily in recent months, which can be attributed to a weaker price trend. In addition, local market demand was lower than expected compared to the previous month, forcing traders and suppliers to lower prices for collected feed and food-grade valine to balance profit margins.

As per ChemAnalyst's prediction, " Sunflower Oil prices are expected to remain weak until the final weeks of June while it can rise significantly in the international market as the third quarter of 2023 approaches. The new production is expected to start in the export market, such as Ukraine, due to increased orders and ease of trade activity. Market players likely have sufficient inventories to meet urgent orders in international markets."

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