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Global sunflower oil prices are continuing their downward trend, driven by strong expectations for a bountiful harvest. This insight comes from Serhii Repetskyi, co-founder and partner at Sunstone Brokers, in an interview with Latifundist.com.
Repetskyi highlighted that the forward price curve for sunflower oil is experiencing a significant dip, approximately $25 per ton from one delivery month to the next, which translates to roughly $1 per ton daily.
'Buyers are beginning to plan their purchases very carefully, as even delaying a purchase by 15 days could result in savings of around $10/ton,' the expert stated.
In the Indian market, a notable price spread persists between sunflower and soybean oil, standing at $300 per ton for September deliveries and narrowing to $250 per ton for November deliveries. This differential is encouraging importers to increase their procurement of soybean oil.
Furthermore, Repetskyi noted that major Russian exporters have rerouted their oil shipments, now directing them to Asian countries via the Baltic region.
Meanwhile, in the European market, the price difference between sunflower oil and rapeseed oil is gradually shrinking. This narrowing spread could bolster demand for sunflower oil, according to the expert, especially as demand for rapeseed oil has started to show signs of slowing down.
Despite these market shifts, the reliability of contract fulfillment and the punctuality of shipments remain primary concerns for buyers.
Source: Latifundist.com