Global sunflower oil prices are currently adjusting from the high level seen in the last year to a long period of weakness, Hamburg-based oilseeds analysts Oil World said on Tuesday. "The sunoil market is in transition," it said. "It is indeed a challenge for the market to adjust from a severe supply shortage to an upcoming supply boost within a few weeks."
Sunflower oil prices have shot up to record levels in the last year following poor harvests in key producing regions including Ukraine, Russia, the European Union and Turkey.
But Oil World predicts the new 2008/09 season global crop will rise to 31.42 million tonnes from only 28.10 million tonnes in 2007/08. European sun oil prices have fallen by around $270 a tonne since early June, and Argentine and Black Sea prices have also fallen heavily on improved sunseed harvest forecasts, it said.