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.
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.
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.
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.
