Sunflower Oil Market Report – 23 November 2015

Posted November 23rd, 2015 by Veg Oil Desk & filed under Sunflower Oil Market Report, Sunflower Oil Prices.

A typical slow start to Monday here in Europe and Ukraine. China posted some gains in local exchange but Bean oil and Palm failed to gain any momentum. Veg oil markets are now more or less buyers’ market with sellers waiting for buyers to bid and book. Ukraine sunflower oil prices are not coming down and most traders are holding on to offers to have a good MTM (I suppose). Demand is still there for small volumes of near by shipments and thus keeping the FOB afloat.

India – Indian market continues to evolve more in blended oil market, with established companies introducing cheaper blended oils. Some have even started blending with Palm olein to present cheaper options for frying oil with sunflower oil. Most of the ports are full with stocks and thus creating pressure on the supply as well as financing line. Sellers have costly replacement and not too desperate to increase the disparity. Most of them are resorting to means like blended oils to get the full value for their imported sunflower oil. Excessive rains in southern India have also disrupted operations and most of the ports are facing congestion. Over all demand is getting reduced and imports for future months will be effected. Soybean oil continues to trade a huge discounts to Sunflower oil.

Turkey Market – as per our Friend Veysel Kaya, his analysis and report. Current Sunseed new-crop Dec15/Jan16 CIF Marmara offers mostly 465 – 475 $/mt with very limited offers, i.e. almost disappeared sellers. Import cost at least comes about 1.730 TL/mt for 40 feet container basis and CIF Mersin import cost also around 1.770 TL/mt. CIF sunflower oil does not work above USD 450 and thus these prices are on higher side for local crushers. In Thracian commodity exchanges, some small parcels continued to be traded by Friday, and the price average was once at 1.640 – 1.650 TL/mt EXW range as 40/8/2-3 quality basis. However, we also hear Crushers paying prices up to 1.665 – 1.680 even 1.690 – 1.700 TL/mt CPT as cash and/or 1-2 weeks delays. Black Sea Sunflower seed market continues to observe Shortage in Sunseed exportable surplus and we see sellers disappearing . However crushers in Ukraine are facing issues with crush margins.

– In Constanza, the heart of Sunseed biz in Black Sea, Dec15/Jan16, offers were at USD 435 – 440 vs 450 – 460 $/mt by Friday. Weaker EURO vs Dollar limit the demands from European buyers.
– FOB Danube Ports such Braila/Galati/Reni etc where Turks are more active, new-crop prices were 420 – 430 vs 445 – 455 $/mt as well!!!

Mkt Mid-Day Closing:
DALIAN Jan/May
PO -32 4080 -2 4324
BO -6 -2
SB +57 -49

CBOT
esbo dec -0.06 27.49
esbn Jan -3.25 856.75
esbm -0.60 286.00
Soyoil Share Dec 32.68%
Corn Dec -1.00 363.25
Wheat Dec -0.50 490.25

ENERGY
Crude Dec +0.07 40.61
Gasoil Dec -1.00 426.00
Brent Nov +0.15 44.33
POGO Jan 93.57

Palm oil
BMD (3rd month) Jan -15 2284
Hi 2292 Lo 2271
Vol 22,754 lots

MSIAN OLN
JFM 562.5 v 557.5
AMJ 581.5 v 577.5
JAS 580 v 572.5
OND 577.5 v

INDON CPO
Dec 485 v
Jan 510 v

LOCAL MSIA CPO
Nov: 2120

STEARIN (ASSESSED)
Nov 455 (DLVD)

PFAD (ASSESSED)
Nov 365 (DLVD)

6 ports Europe Nov.+ Dec 865 v 850
JFM 850 v 835
AMJ 850 v 835
JAS 860 v 845

OND seller 840
* Black Sea sunflower oil Dec 805 vs —, Jan 805 vs —, FM 800 vs —, AMJ 795 vs —
* Russian sunflower oil indicated at USD 790 for Dec
* Spain offered Jan 850 vs —
* Italy offered Jan 845 vs —
* India indicated Dec 875, Jan 865, FM 851, AMJ 850 vs —
* Turkey offered at USD 835 vs —
* Currency Euro 1.0625, INR 66.44, UAH 24.11, and Rub 66.0886