Ukraine. Sunflower oil is underestimated on the world market

15.09.2016

Yulia Garkavenkois an oilseed and vegoil market leading expert of "UkrAgroConsult"

(Based on the materials of International conference “Black Sea Oil Trade - 2016”)

In the new 2016/17 MY due to the unparalleled sunflower crop -14 MMT (UkrAgroConsult`s forecast), Ukraine will be able to reach the record volume of sunflower oil production and exports – 5.65 MMT and 5.17 MMT, respectively.

sunflower crop

According to our previous forecasts (at the conference Black Sea Grain – 2016, April) due to the new records the spread between sunflower oil and soybean oil as well as between sunflower oil and palm oil can reach the negative values. This means that sunflower oil will be cheaper as it was observed in 2011/12 and 2013/14 MY.

 spread between sunflower oil and soybean oil

Even now we can see the sharp price squeeze for all vegetable oils.

price vegetable oils

Though, compared with the other vegoils, in the first place with soybean and palm oil, sunflower oil has turned out to be the most underestimated of all.

Thus, with the palm oil and soybean oil price growth (+ 13% and +7% respectively), we can see that the price of sunflower oil lowered by 4%.

price of sunflower oil

 

Full version of the article is available to subscribers for weekly market report “Black Sea Vegoils & CIS” and “Online market review” by UkrAgroConsult.

 

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