According to the recent Oil World report, the forecast of global production of sunflower oil in 2015/2016 MY increased by 150 thousand tons to 15.71 million tons. The index grew due to the similar trends in Ukraine – up by 130 thousand tons to 4.93 million tons, and Argentina – up by 50 thousand tons to 1.17 million tons.
The forecast on sunflower oil imports increased by 160 thousand tons, to 8.19 million tons, at the expense of the EU countries – to 1.47 million tons (up by 100 thousand tons), and China – to 0.78 million tons (up by 60 thousand tons).
Also, the experts expect the growth of sunflower oil global production in 2016/2017 MY to the record index at 17 million tons, in terms of the increased oil processing rates in the CIS and EU countries.
It is worth noting that the prospect of rapeseed oil deficit on the global market in the new season will strengthen the demand for sunflower oil in India, China, Turkey, Egypt, Iran and other countries, which will increase the prices. In addition, the expected reduction of soybean oil production and exports in the current year, and deficit of palm oil on the global market will impact the price increase for sunflower oil.
In the season-2016/2017, the exports of sunflower oil will reach the record index at 9 million tons, including 4.9 million tons from Ukraine (up by 400 thousand tons compared with the previous season), 1.8 million tons from Russia (up by 200 thousand tons). Turkey and the EU will increase product supplies. However, due to the forecast reduction of the supply of rapeseed oil in the European Union, the demand for sunflower oil in the region will increase, which will somewhat lower the export potential of the European product. (APK-Inform/Business World Magazine)