Sunflower oil was the only vegetable oil that maintained its positions on the global market during the COVID-19 pandemic as its prices declined insignificantly, declared the managing partner of Sunstone Brokers SA, Sergiy Repetskiy within the online conference SUNFLOWER OIL: KEEP ON TRADING ONLINE-2020 on June 11.
“First of all, high demand from importers prevented the decline of sunflower oil prices. Particularly, there was the robust demand on Russian sunflower oil from Turkey”, - he added.
Talking about the export potential of Ukrainian sunflower oil in next 3 months (June-August), S.Repetskiy said that the country could supply 0.94 mln tonnes of the product to the global market while Russia could export 1.15 mln tonnes of the oil. In particular, Russia could sizably increase supplies to Turkey and China as well as Iran, Kazakhstan and Uzbekistan.
“The volumes of offers of sunflower oil at the end of the season that will be lower than year ago will cause the main effect on price formation during summer period. Moreover, the demand behavior of India and China will also adjust the prices. Additionally, the spread between soybean and sunflower oils, crude oil development as well as the pandemic will effect sunflower oil prices. And, of course, sunflower seed prices will have the impact on oil segment”, - the expert pointed out.
Moreover, the speaker emphasized that it is highly likely the prices of sunflower oil could vary at 775-800 USD/t FOB in main Ukrainian ports in June-August.
“With a probability of less than 50%, sunflower oil prices could be at 760-775 USD/t. However, generally, we can expect the upward price trend by the end of the season”, - S.Repetskiy said.