Russian Sunflower Oil Export Prices Fall On Weaker Demand

Russian sunflower oil export prices fell as the market traded sluggishly as demand from many major importers was weak.

As of 10 May, sellers' offers for Russian gross sunflower oil for the May shipment were down US$10-35 at US$1,925-2,000/mt FOB.

Buyer bids were down US$10-15 at US$1,860-1,900/t FOB.

Importers faced payment problems due to Western sanctions imposed on Russia and therefore preferred to buy alternative vegetable oils.

Weak sunflower seed prices and high supplies have reduced the cost of sunflower oil production and also put pressure on sunflower oil prices. Exporters are preparing to lower their offers for sunflower oil to attract more demand.

At the same time, high domestic logistics costs in Russia, slightly improved demand from Turkey (as Turkey was unable to source Ukrainian sunflower oil) and the increase in Russian export duties on sunflower oil restrained the fall in sunflower oil prices.