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Trade4go
Apr 4th, 2025
Original content
In Apr-25, Russia will lower the export duty on sunflower oil to USD 56.50 per metric ton (RUB 4,568.7/mt), down from USD 126.20/mt (RUB 9,333.20/mt) in March, according to the Ministry of Agriculture of Russia. The duty on sunflower cake will also be reduced to USD 12.2/mt (RUB 939.5/mt), from USD 23.50/mt (RUB 1,742.30/mt) in March. These duties are based on indicative prices of USD 1,065.70/mt for oil and USD 206.10/mt for cake. The Russian government extended the floating export duty system – in place since Sep-21 – until Aug-26.
Sunflower planting in Russia has started earlier than usual this year, with 2.1 thousand hectares (ha) sown in the Rostov region by March 20. This early start is due to warmer weather and climate change, which has led to milder winters in Russia. The Rostov region, a key area that accounts for a significant portion of the national crop, plans to plant sunflowers on 945 thousand ha this year. Overall, sunflower planting in Russia is expected to cover nearly 11 million ha, with the largest areas in Saratov and Orenburg regions. Sunflower remains a highly profitable crop, with predicted profitability rising from 43% in the previous season to over 60% in 2024/25. Additionally, the 5% expansion of processing capacities in 2025 will support market stability and ensure strong demand for sunflower oil.
Efko, one of Russia’s largest agro-industrial companies, has temporarily shut down two sunflower oil plants in the Krasnodar region, citing unprofitable processing, especially for exports. The company emphasized that the suspension is a temporary operational decision. Market sources indicate that oilseed prices in southern Russia exceeded USD 0.54 per kilogram (kg) in mid-March, while processing profitability requires prices below USD 0.42-0.43/kg. Farmers attribute the high raw material costs to last year’s poor harvest, further pressuring the industry.
Farmers in Turkey's Amasya province received drought-resistant sunflower and chickpea seeds worth USD 400,000, distributed under the 50% grant-based Agricultural Land Utilization Efficiency (TAKE) Project. A total of 1,052 bags of sunflower seeds will be planted on 21,040 decares, while 55,500 kg of chickpea seeds will cover 4,625 decares. The Governor of Amasya province emphasized the importance of boosting sunflower and chickpea production for food security. The project also aims to bring fallow lands into cultivation and optimize limited water resources. The Provincial Agriculture Director highlighted efforts to minimize drought impacts through production planning and external funding to enhance farmers’ profitability.
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In W13, Russia's sunflower oil prices remained relatively high at USD 1.11/kg, despite a small week-on-week (WoW) drop of 0.89% following the peak in pricing during W12. Prices are still higher month-on-month (MoM) by 0.91% and year-on-year (YoY) by 35.37%. The price increase is driven by strong demand from key importing countries like India and Turkey. Additionally, adverse weather conditions affecting both local and global production have constrained supply, further pushing prices upward.
In W13, Ukraine's sunflower oil prices slightly decreased to USD 1.15/kg, following the peak in prices during W12, reflecting a small WoW drop of 0.86%. Despite this, prices remain higher MoM by 1.77% and YoY by 40.24%. The rise is primarily due to increased sunflower seed prices, driven by higher demand and tighter supply, which has led processors to be cautious due to limited raw material availability, thus restricting processing capacity and impacting sunflower oil exports. However, the decline in sunflower oil prices is linked to falling prices of competing oils such as palm oil and soybean oil, as well as a weaker euro, reducing demand in the European Union (EU) and leading to decreased export activities.
In W13, Argentina's sunflower oil prices dropped to USD 1.08/kg, reflecting a 0.92% WoW decline and a 1.82% decrease MoM. This price reduction is primarily driven by a drop in demand due to the decreasing prices of competing oils, such as palm oil and soybean oil. However, despite these short-term drops, YoY prices still show an increase of 27.06%. The decrease in sunflower oil prices can be attributed to a seasonal increase in domestic production, which temporarily alleviated price pressure. Looking ahead, however, local supply remains tight. Strong global demand and anticipated reductions in global production are expected to maintain upward price pressure in the medium term.
Both Russia and Ukraine have seen rising prices driven by strong demand from key importing countries like India and Turkey. However, price fluctuations also reveal vulnerabilities linked to supply constraints and competition from other oils. To capitalize on current price levels, exporters should explore diversifying their markets beyond traditional buyers and target emerging economies in Africa and Asia where demand for sunflower oil is growing. Additionally, expanding processing capacities, especially in Russia where the forecasted growth is 5% in 2025, would help mitigate risks from production volatility.
With increasing global focus on sustainability, especially in regions affected by droughts, producers can explore partnerships for sustainable farming practices. For example, Turkey's initiative to distribute drought-resistant sunflower seeds is a step toward improving long-term production. Producers should also consider leveraging such initiatives to appeal to environmentally-conscious markets while ensuring consistent supply and avoiding disruptions caused by weather events. This could include seeking certifications or aligning with international sustainability standards to attract premium prices.
Sources: Tridge, Agro Portal, Kamu 3, Milk News, Spec Agro, UKR Agro Consult,
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