Due to the low sunflower harvest expected in Europe and the dry summer, sunflower oil prices are rising sharply. Experts predict that oil production in 2025–2026 will be below the average for the last five years. This is reported by Bloomberg, writes UNN.
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According to the EU's agricultural resource monitoring department, "largely due to drought in the south, where most sunflowers are grown," yields in Ukraine could fall below average.
France is considered the leading European producer of sunflower oil, but it also expects a 15% reduction in production compared to the five-year average. This was reported by the French Ministry of Agriculture.
At best, it will be a bad harvest, and at worst, a catastrophic one (about 8.3 million tons - ed.)
Commodity3 data shows that prices in French ports are now close to their highest levels since November 2022, and in Ukraine, trading is taking place near a five-month high.
The price increase reflects fears of a production deficit, as Ukraine and the EU together account for about 40% of the world's sunflower harvest, according to the US Department of Agriculture.
The FAO's key food commodity index shows that vegetable oil prices have reached their highest level since July 2022, adding pressure to food inflation, which is already at a two-year high.
Usually, we would see coverage at 50%, 60% now
He also noted that currently, purchases to cover demand until December may only be about 30%, and some manufacturers are starting to change product formulations to reduce the use of sunflower oil.
UkrAgroConsult reports that the harvest in Ukraine is slow, but "with increasing harvesting rates in the north and west, yields are improving." Sown areas are expanding, which means that the harvest in Ukraine may increase in the coming years.
In Europe, harvesting is active, but early yields and oil content remain low.
Although surprises from later harvests are possible