The increase in palm oil prices contributes to the increase in the export of sunflower oil from Ukraine

Crude palm oil (CPO) prices rose to a 17-month high amid rising oil prices, leading to increased sunflower oil imports by India and exports from Ukraine in March.

India increased sunflower oil imports in March by 51% from February to 448,000 tonnes, the second-highest on record, while palm oil imports fell 3.3% to a 10-month low of 481,000 tonnes.

In March, Ukraine exported 608,000 tons of sunflower oil, which corresponds to the level of January and February, but is 16% higher than in March 2023.

In general, in 2023/24 MY, the export of sunflower oil increased compared to the previous season by 18.7% from 3.2 to 3.8 million tons, while the USDA forecast is 5.75 million tons (5.7 million tons in 2022/ 23 MY). In order to achieve it, it is necessary to export 400,000 tons of oil in April and August, while during the first 7 months of the season, the average rate of shipments was 575,000 tons.

In 2022, Ukraine exported 4.3 million tons of sunflower oil worth $5.5 billion, and in 2023 – 5.7 million tons worth $5 billion.

The largest exporters of sunflower oil in Ukraine are the companies Kernel, Bunge and MHP.

Prices for sunflower oil in Ukraine rose to $780-790/t with delivery to Black Sea ports, $830-840/t with delivery to Bulgaria and $880-920/t with delivery to Italy and the Netherlands. Increased demand from India will support prices, but only if oil prices remain high.

Amid a possible escalation between Israel and Iran, or at least Hezbollah, oil prices rose 4% for the week, sending palm oil quotes higher.

May palm oil futures in Malaysia yesterday rose another 2.2% to 4,407 ringgit/t or $927/t (+6.5% for the week) on the back of dry weather and reduced output during the Ramadan holiday.

On the stock exchange in Dalyan, palm oil contracts rose in price by 3.5%, soybean contracts by 1.1%.

According to surveyors Intertek Testing Services, AmSpec Agri and Societe Generale de Surveillance, in March the export of palm oil products from Malaysia grew by 11.77-29.2% compared to February.

May soybean oil futures on the Chicago Stock Exchange rose just 0.5% to $1,076/t yesterday (+2.4% week) as soybean prices remained under pressure from low US exports and increased supply of cheap soybeans from South America.

Tags: Ukraine, sunflower oil, prices, palm oil