Sunflower oil prices are rising

Currently, export prices for sunflower oil have strengthened, while soybean and palm oil continue to fall in price.

At the moment, prices for unrefined sunflower oil in the Russian Federation are the highest since the beginning of the year. In April they grew even bigger.

“Average prices, according to our estimates, on a FOB Black Sea ports basis increased by about 5% from month to month, to $825 per ton.

At the same time, the transactions themselves took place at a higher cost — mainly in the first half of April,” notes OleoScope analyst Kirill Lozovoy.

In his opinion, the current situation on the world market contributes to the growth of quotations for sunflower oil.

For example, oil is becoming more expensive, and demand from India and China has been very strong for several months, although it has now fallen somewhat.

Sunflower oil holds up better than most other oils.

For example, soybean oil is losing price due to the fact that a high harvest is expected this season in South America, which is one of the main producers of this product.

Palm oil is losing price due to declining demand and rising production volumes in leading producing countries. But prices for rapeseed, on the contrary, are rising, since a serious decline in the new harvest is expected in Canada and the European Union.

Against this background, many countries are trying to purchase this oil in advance, which largely contributes to rising prices.

It is interesting that prices within the Russian Federation have also increased, although there are no objective reasons for this, but they follow export quotes.

“As for the domestic market, we are tracking an upward trend: ruble prices “mirror” the situation with export quotations.

The price of unrefined oil in Central Russia remains at the highest level since the beginning of the year — 72.6 thousand rubles / ton, but a number of transactions were even more expensive,” says Lozovoy.

At the same time, in Russia at the moment there is no duty on the export of sunflower oil, which additionally stimulates the production of oil from sunflower, for which there is a duty for the export.

At the same time, the duty on the export of sunflower meal has decreased by almost 30%; now it is about 2,390 rubles per ton.

If we talk about the oils market as a whole, the FAO Vegetable Oil Price Index in April was at its highest in the last 13 months, reaching a value of 130.9 points.

This could be a direct consequence of rising prices for sunflower and rapeseed oils, analysts say.