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EU sunflower oil prices fall on demand drop, more supply -Oil World
EU sunflower oil prices fall on demand drop, more supply -Oil World
12.04.2022 (www.agriculture.com) - HAMBURG, April 12 (Reuters) - European sunflower oil prices have fallen sharply in the past two weeks after surging upwards after Ukraine’s huge exports were cut, the head of Hamburg-based oilseeds analysts Oil World said on Tuesday.
“Larger than expected quantities offered for sale contrasts with lower than expected fresh demand from consumers at several locations,” Oil World CEO Thomas Mielke said. “There is though, currently a wide range of prices.”
More Ukrainian sunoil is returning to the market, offered for sale at about $1,900 to $2,250 a tonne for April/June delivery with export by truck or train via Moldavia, Romania, Poland and other neighbouring countries, Mielke said.
EU sunoil prices surged to around $2,900 to $3,000 a tonne in mid March, up from about $1,490 a tonne on average in February.
“Russian sellers are offering sunoil and other agricultural commodities at price discounts on the world market in an effort to stimulate purchases by foreign buyers and to reduce current high stocks,” Mielke said.
“In the first week of April, Russian sunoil was offered at $1,800 to $1,900 a tonne fob or even lower."
“In the European Union, the sunoil price premium over rapeseed oil has almost disappeared and at some locations sunoil has even dropped below the price of rapeseed oil,” said Mielke.
“This is a reflection of the demand destruction done by the unusually high prices in the first half of March.”
But physical supplies of sunflower oil will remain relatively tight in the EU as long as war in Ukraine continues, he said.
EU oilseed processors are also increasing sunoil production, partly using sunflower seed imports from South America.
“In the EU, sunflower seed crushings are rising more sharply than expected and are estimated to reach 9.3 to 9.4 million tonnes in the season between August 2021 and July 2022, compared with 8.0 tonnes in the previous season,” he said. “The biggest increases are in Romania, Bulgaria, France, Hungary and Spain with profit margins favourable.” (Reporting by Michael Hogan; editing by Jason Neely)
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