October Sunflower Oil Prices Continue to Depreciate Across Europe Amidst Higher Stocks Availability

As of October 2023, the price trajectory for Sunflower Oil is projected to remain on the downward side, in line with the market trend witnessed in previous months. Ukrainian Sunflower Oil export momentum is expected to increase in the coming months due to the start of the peak harvesting season, which begins in September and lasts till the end of October, following early November 2023.

Considering the demand side, the Global consumption of Sunflower Oil has been weakening in recent months due to several factors, including higher availability of stocks among the domestic merchants and lower offtakes within the regional and neighboring markets in various sectors, including the biofuel industries as Sunflower Oil is considered as a good feedstock for biodiesel production because of its higher content of oil and a comparatively lower melting point. Furthermore, compared to other edible oils such as Palm and Soybean oil, It is also a relatively inexpensive oil, which makes it a more attractive option for biodiesel production in various regions. However, for the entire month of October, the consumption of Sunflower Oil in the biodiesel industry is expected to remain downward following the depreciating pricing trajectory since the previous month.

Additionally, Vegetable oil prices have been under pressure over the last month, with significant falls in most of them. Sunflower Oil has led to these falls and has traded considerably below within the domestic and global markets. There are significant stocks in several countries and better-than-expected prospects for Russia, Ukraine being one of the significant exporters of this. On the other hand, despite the appreciation in the prices of energy, Sunflower Oil, along with Palm Oil prices, have been under pressure due to the seasonal increase in production provided by favorable weather conditions.

Moreover, Sunflower Oil and rapeseed Oil are additionally considered two of the most important oilseed crops in the world, accounting for their use in industrial purposes apart from food industries. Further adding to the situation, Sunflower Oil is the world's third most consumed vegetable oil, after other vegetable oils such as soybean and rapeseed oil. Rapeseed oil is the fourth most consumed vegetable oil in the world. The continuous surge in the supply of vegetable oils in October is likely to put downward pressure on prices. However, it is important to note that the vegetable oil market is volatile and can be affected by various other factors, including weather, economic, and government policies. Besides this, the Sunflower and rapeseed are typically harvested in the fall in the Northern Hemisphere. This means that the arrival of sunflower and rapeseed crops in October will add to the higher global supply of vegetable oils, including Sunflower Oil at a time when palm oil production is also peaking.