Commodities Bulletin #8

The major commodities markets are under scrutiny as a valuable resource for purchasing strategies, however, import bans from Ukraine across Eastern Europe have caused widespread tension.

Sunflower oil continues to be the most competitively priced vegetable oil in the recent period due to the increased supply from the Black Sea. This has generated strong pressure on domestic sunflower seed quotations in countries neighbouring Ukraine, igniting protests from local farmers. This resulted in the decision of some Eastern European countries to unilaterally impose import bans on the Ukrainian product. Uncertainties also remain over the renewal of the Black Sea corridors, generating further tensions.

• UKRAINE: Processing activities remained high in March and sunflower oil exports were also up, rising by 50% in Q1 2023 compared to the same period last year, reducing the country's stocks accordingly.

• RUSSIA: Buoyed by a record harvest, processing activity remains high and exports have also increased strongly, supported by strong demand from China and India, along with several countries in the Middle East and Africa.

• EU: The high volume of imported sunflower seeds (mainly of Ukrainian origin) by EU countries was one of the main reasons for the reduction in purchase volumes, which contributed to a strong increase in processing activity by European processors and an increase in the supply of domestically produced sunflower oil to domestic markets. Over the same period, the export of sunflower oil from the European Union doubled compared to the previous year.