He sunflower market is at a critical point, with exports that reached unprecedented figures since 2006. This phenomenon, driven by an international context of shortage in the supply of vegetable oils, has allowed the country to capitalize on its position in global trade, with a notable increase in exported prices and volumes.
The 2024/25 global campaign anticipates a 10% drop in sunflower production, mainly in Russia and Ukraine, countries responsible for 70% of global sunflower oil exports.
This contraction, combined with local policies in key markets such as Indonesia and the United States that prioritize the use of vegetable oils in biofuels, has reduced the global exportable balance of vegetable oils.
In this context, Prices have responded with notable increases. FOB Argentine sunflower oil, for example, It rose 45% since the beginning of the year, reaching US$1,140 per ton, the highest level since February 2023.
The local sunflower industry processed 3.2 million tons so far in the 2023/24 campaign, a value in line with the average for the last five years. However, 70% of this production has been destined for the foreign market, 13% more than the historical average.
Until October, 989,000 tons of oil and 961,800 tons of byproducts were exported, which positions this campaign among the largest exported volumes in almost two decades.
In addition, the records of Affidavits of Foreign Sales (DJVE) reflect a business record, accumulating 1 million tons of oil and 1.1 million tons of byproducts at the beginning of November.
Despite export vigor, domestic consumption shows a certain plateau. Local purchases of sunflower reached 2.6 million tons, which represents 70% of the estimated production for this year, but 11 percentage points below the average of the last decade.
This lag could be attributed to stability in domestic industrial processing, which only grew by 16% compared to the average of the last decade, in contrast to a 45% increase in exports.
The future looks encouraging. Export commitments for the next sunflower campaign already reach 401,000 tons, the highest volume in three years, while initial prices average $1,180 per ton.
This dynamism adds to the high level of contracts for merchandise of the current campaign, marking an exceptional October in terms of operations.
Source: Ambito
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