Prices for sunflower oil remain at a low level due to an oversupply on the global market.

According to Mikhail Maltsev, the head of the Fat-and-Oil Union, export prices for sunflower oil remain steadily low, which excludes the possibility of sunflower prices growth. He reports that in the last month, a ton of sunflower seeds on average cost 26.5-29 thousand rubles per ton, depending on the region. The export of oilseeds has only reached 175 thousand tons in the first five months of the season, with 77% of this volume being directed to the EAEU countries. Kirill Lozovoy, an analyst at the OleoScope information and analytical agency, confirms that world prices for sunflower oil are relatively low, ranging from $750-780 per ton. He points out that the decrease in export prices for oil has currently halted, but there are no significant prerequisites for price growth. However, the positions of rapeseed and palm oils are strengthening now, which could lead to price corrections. The abundance of sunflower oil supply, especially in the Black Sea region, also exerts a restraining influence on prices. Sunflower seed stocks in Russia and Ukraine are significant, but monthly sales are quite active. In January, both countries shipped just over 1.03 million tons of oil to the global market, and in February - more than 1.05 million tons. Alexander Korbut, an independent expert in the grain market, claims that under the ban on sunflower export beyond the EAEU, demand is determined by Russian processors, and their prices depend on global demand. He notes that sunflower and oil prices have slightly increased last week, but this is rather due to currency fluctuations. The price ratio of sunflower seeds to oil is approximately 1 to 2.2, which is a small value. Prices may rise slightly due to increased supply, but it is all very unstable. Korbut does not forecast a sharp rise in seed prices in the future. He believes that prices will remain at the current level – 26-29 thousand rubles per ton. It should also be taken into account that sunflower is still being harvested in some regions. As of the beginning of March, sunflower stocks in agricultural organizations are lower than a year ago, but higher than two years ago. According to Lozovoy, in the coming months, key importers may be more active in purchasing sunflower oil due to the rise in global palm oil prices. This could lead to a reduction in stocks and partial elimination of discounts. In his opinion, there are no prerequisites for sunflower prices to rise, as the global market situation does not support seed price hikes. Large inventories of oilseeds still exist in the domestic market. In February, prices decreased in some regions, and this trend continues in the first half of March. More news on the agro-industrial complex - in our Telegram channel. Subscribe!