<img alt="" src="https://secure.item0self.com/192027.png" style="display:none;"> Top Stories

EU sunflower oil price finds support on renewed demand

September 13, 2021

1 mins read

The Mintec Benchmark Prices (MBP) for EU sunflower oil rose 2.3% m-o-m to EUR 1,108/MT on 10th September. The market has continued to recover slightly after falling almost 35% between mid-March and mid-June. Market participants had delayed purchases of sunflower seed and oil until the new marketing year, which will commence in October ’21 for the EU. As prices had fallen significantly over March-June period, EU sunflower products gradually became more attractive, especially as sunflower oil prices have slipped to one of the cheapest in the vegetable oil complex. Its relative competitiveness against soyabean oil and rapeseed oil has increased significantly from the prior quarter.  

 

On the demand side, EU sunflower oil consumption for energy purposes is expected to rise for the coming marketing year (MY), according to market participants, which will add upward pressure for sunflower oil prices. Additionally, as of 10th September, India is also expected to import more sunflower oil following a tax reduction on crude sunflower oil from 7.5% to 2.5%, while the base rate on refined sunflower oil has been reduced to 32.5% from 37.5%.   

 

However, an expected increase in production the 2021/22 MY still poses a downside risk for the EU sunflower seed and oil market, with record-level sowings in both Ukraine and Russia during the 2021 planting period.   

Topics: Oils & Oilseeds
Archit Singh
Archit Singh

/You May Also Like

Featured Image
  The Mintec Category Index for packaging (global) maintained an...
Featured Image
The average Mintec price of UK onions for the first three weeks of...