Sunflower Oil Holds Near Mid-2022 Highs

Sunflower oil futures eased toward $1,515 per tonne, retreating from the over three year highs reached on February 6th as expanding South American supply and softer seasonal demand loosened the previously tight balance in global vegetable oils. Shipments from Argentina are accelerating, highlighted by Bulgarian processors securing roughly 400,000 tonnes of competitively priced sunflower seed for March arrival, while Brazil’s record soybean harvest has pushed local soybean oil offers down, broadening the pool of cheaper substitute oils. At the same time palm oil futures have slipped, preserving palm’s position as the lowest cost option for major buyers such as India and intensifying competition for market share. Demand has also cooled as Lunar New Year holidays curbed Asian buying and Malaysian palm exports in the first half of February fell by 11% to 15%, with the approaching Ramadan period likely to temper Middle Eastern imports further.

Sunflower oil futures hovered near $1,540 per tonne, testing mid 2022 highs as persistent supply tightness from the Black Sea collided with steady global demand and few short term substitutes, leaving the market with little spare capacity. Prices have surged to levels last seen during the early war period after processing bottlenecks and attacks on Ukrainian crushing facilities curtailed export availability and drove regional FOB prices sharply higher. Intermittent Russian export restrictions and variable duties have further constrained flows, adding friction and reducing shipment reliability for buyers. While Argentina has increased crushing and doubled sunflower oil exports in January 2026, this additional supply has only partially eased the imbalance, as much of the output is absorbed by established trade routes and strong byproduct demand.

Sunflower oil futures climbed to about $1,540 per tonne, the highest in over three years, after supply squeezes in the Black Sea collided with firm industrial and biodiesel demand. USDA WASDE revisions trimmed global sunflowerseed output and crush forecasts as weaker harvests in Ukraine and parts of the Black Sea removed expected exportable tonnage. Regional exporters and consultancies report materially lower shipments year on year as Ukraine and Russia curtail flows, while weather damage and port disruptions have cut near term availability and raised freight premia, forcing buyers to chase scarce cargoes. South American and EU production gains have partly offset the shortfall but remain too small to fill the gap, keeping seed availability tight and crush margins elevated. Strong edible oil consumption and biofuel blending obligations have sustained physical offtake, so the market is clearing at higher prices and sunflower oil is up roughly 12% year to date.