For the Quarter Ending March 2022
North America
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.
Asia-Pacific
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.
Europe
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.
