Global demand for sunflower oil is growing: key factors
23 May 11:12
In April, export prices for Ukrainian sunflower oil rose gradually, though not as sharply as those for competing vegetable oils. This is reported by "Komersant Ukrainian", citing the Grain Exchange.
According to APK-Inform, the processing margin for sunflower seeds in Ukraine has recently fallen sharply due to rising raw material prices. However, the increased competitiveness of sunflower oil on the global market is improving export prospects for Ukrainian processors.
Importers are actively switching from expensive palm oil to cheaper sunflower oil, especially against the backdrop of increased use of vegetable oils in biodiesel production.
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However, rising global demand not only improves export prospects for Ukraine but also intensifies competition with other oil producers, particularly Russia and Argentina.
Previously, Argentina exported sunflower oil for a limited time, but this year, amid a record harvest, shipments will continue for much longer and may coincide with the traditional off-season for Black Sea oil, which will limit seasonal price increases.
In January–March 2026, Ukraine, Argentina, Turkey, and Russia collectively exported 3.3 million tons of sunflower oil, which was 22% higher than the corresponding figure for 2025. In March, oil exports from these countries reached a multi-month high of 1.29 million tons.
Specifically, Argentina increased sunflower oil exports in March by 64% compared to February, reaching an 8-month high of 208,000 tons, 70% of which was purchased by India. Sunflower oil exports from Russia rose by 16% in March to an annual high of 530–550 thousand tons, most of which were purchased by India and Turkey. Turkey increased exports in March to a 9-month high of 105 thousand tons, which were shipped to countries in Africa and the Middle East.
Despite strong market competition, Ukraine increased sunflower oil exports in March by 18% compared to February, reaching 427,000 tons, and in April to 442,000 tons—the highest level since June 2025—with shipments primarily destined for the EU and the Middle East.
At the same time, Ukraine’s share of total exports in March fell from 40% in January to 33%, while Argentina’s share rose from 11% to 16%, and the shares of Turkey and Russia remained virtually unchanged.
India confirmed this shift in global trade patterns, increasing its sunflower oil imports by 17% to 1 million tons between January and April (according to SEA data). Nearly 52% of this volume was supplied from Russia, but Argentina is set to significantly increase its oil shipments to India in the near future. In the first four months of the year, the share of Argentine oil in Indian imports rose from 7% to 22% compared to the same period in 2025, while the share of Ukrainian oil fell from 23% to 16%.
It can be concluded that the sunflower oil market is entering a new phase, where, against the backdrop of rising demand and competition for buyers, price levels, logistics efficiency, and supply stability are becoming decisive factors.
Ukraine still has some potential for sunflower processing until the end of the season, but volumes will depend on the processing margin relative to other oilseeds.
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