Black Sea region will not lose ground in the vegoils market in the new season 2018/19

08.05.2018

Based on materials of Julia Garkavenko, a UkrAgroConsult oilseed market expert and a speaker at the “Fats&Oils Belgrade” Conference

As UkrAgroConsult earlier mentioned, sunflower oil is undervalued in the world market. We compared the production increases in different vegoils with their price gains and obtained interesting results. The greatest production increase took place in the segment of palm oil and the least one was registered in sunflower oil. However, the spread between sunflower and palm oils decreased significantly during last several seasons.

Sunoil exporters have to compete not only with each other but also with other vegetable oils. Moreover, the top producers and exporters of sunoil in the Black Sea region are Ukraine and Russia. Ukraine and Russia now account for most of competition in the sunoil market, having sidelined the previous main competitor, i.e. Argentina.

The outlook for the new season 2018/19 appears to be quite optimistic. Apart from a 10% gain in Black Sea sunseed production, which UkrAgroConsult has already mentioned before, sunoil output is expected to increase. This will only reinforce the region’s position in the global vegoils market.

Detailed information on oilseed and vegetable oils markets prospects in the 2018/19 season in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Vegoils" by UkrAgroConsult.

Further perspectives of the Black Sea trade of oilseeds and vegetable oils will be discussed at the VI International Conference “Black Sea Oil Trade”, which will take place on September 20, 2018 in Hilton hotel, Kiev, Ukraine.

Annual International Conference “Black Sea Oil Trade” – is an effective opportunity to discuss the latest tendencies in oilseed and vegoil sector of Ukraine and Black Sea region.

 

UkrAgroConsult

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