For the Quarter Ending June 2023
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
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
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
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.
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.
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
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.
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.
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.
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.
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.
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.