InfoSAWIT, JAKARTA - Oil World mentioned that sunflower oil production in the globe in 2022/23 would be increasing 6,8%, while the last stock increased 27,2% to be 4,5 million tons, increased from the previous year that reached 3,5 million tons.
The joint stocks of sunflower oil in India, China, and Turkey in 2022/23 showed incredible progress that reached 151%, or 1,43 million tons compared to 0,57 million tons that were reported last year. The leap of stocks in the three countries could make decreasing sunflower oil imports in this very short.
As written on PalmPulse published by Malaysian Palm Oil Council (MPOC), one to notice is that the three countries are the biggest sunflower oil importers. Besides, sunflower seed harvest that starts in Russia in September 2023, would be escalating the stocks. This showed that Russia is the significant sunflower oil producer that would make sunflower oil cheaper.
That is why CPO price could be recovering after the decreasing period in September 2023. It would happen because many hunters bargain because of the cheaper Malaysian ringgit.
Meanwhile expensive crude oil because of diesel export ban in Russia, and decision of Saudi Arabia to minimize production until the late of 2023, would deliver support to recover palm oil price, would maintain its price more than its threshold which reaches RM 3.750 (US$ 798).
“But it is a note that the increasing palm oil stock in Malaysia and price pressure in soyoil and sunflower oil production, would limit palm oil price and maintain CPO at about RM 4.000 (US$ 851).” PalmPulse noted. (T2)
Note: Malaysian ringgit: American dollar (US $1 = RM 4,70)