Sunflower Oil at Over 3-Year Highs

Sunflower oil futures have surged to approximately $1,435 per tonne, reaching a three-year high due to supply constraints in the Black Sea and strong demand for industrial and biodiesel uses. The USDA's WASDE report has lowered global sunflowerseed output forecasts, primarily due to reduced harvests in Ukraine and the Black Sea region. Export shipments from Ukraine and Russia have significantly decreased, exacerbated by weather damage and port disruptions. Although production increases in South America and the EU have helped, they are insufficient to meet demand, resulting in higher prices and a 12% year-to-date increase in sunflower oil prices.