Tender in Turkey: Sunflower Oil Prices Under Pressure

The Turkish Grain Agency (TMO) held an international tender on March 20 for the purchase of 18,000 tons of crude sunflower oil, with delivery scheduled from April 2 to April 21 on a CFR basis. As a result of the tender, three batches of oil were purchased:

This is reported by AgroReview

• 6,000 tons from Yayla, delivered to the port of Mersin/Iskenderun at a price of $1208.9/ton,
• 6,000 tons from Aves, delivered to the port of Mersin/Iskenderun at a price of $1209/ton,
• 6,000 tons from Aves, delivered to the port of Tekirdag at a price of $1195/ton.

Traders expected the purchase prices to be higher, as recently the prices for sunflower oil from Ukraine and Russia had increased by $20-30/ton, reaching $1140-1160/ton FOB. However, further increases were limited by a sharp decline in the quotations for soybean and palm oil.

Sunflower Oil Market Prices

According to Trading Economics, the average price for sunflower oil delivered to buyers decreased by 1% to $1333/ton, losing 3.5% since the beginning of March amid a 3.2% decrease in May soybean oil futures in Chicago to $938/ton and a 2.2% decrease in Malaysian palm oil to $998/ton.

In the first six months of the 2024/25 marketing year, Russia increased its sunflower oil exports by 9% compared to the previous season, reaching 2.51 million tons. The main buyers were India (1.07 million tons) and Turkey (511 thousand tons). It is projected that in the 2024/25 marketing year, Russia will export 5.5 million tons of sunflower oil, intensifying competition between Russian and Ukrainian suppliers, especially in the Indian market.

Export Situation from Ukraine

As of March 1, 2024/2025 marketing year, Ukraine reduced its sunflower oil exports by 24% compared to the same period last season, to 2.4 million tons, the lowest figure since the beginning of the 2016/2017 marketing year. The main buyers of Ukrainian oil remain EU countries, accounting for 54% of the total export volume. For the first time in three years, India became the leader among importers, purchasing 417 thousand tons of oil, five times the amount from the previous season.

By the end of the season, Ukraine could still export about 2 million tons of sunflower oil; however, farmers’ reluctance to sell sunflower in anticipation of price increases limits processing volumes. In March-April, sunflower and soybean oil from Argentina will enter the markets, while Malaysia and Indonesia will begin their seasonal increase in palm oil production.