WHAT IS IT?
Sunflower oil is extracted from the seeds of the sunflower plant (Helianthus annuus). It is the fourth most consumed vegetable oil globally after palm, soybean, and rapeseed. Ukraine and Russia together account for ~60% of global sunflower oil exports, making it strategically sensitive to conflict in the Black Sea region.
TYPES
HOSO (High Oleic Sunflower Oil): >80% oleic acid. More stable — extended shelf life for snacks and frying. Non-GMO, increasingly demanded by food manufacturers replacing trans fats.
NUSO (NuSun / Mid-Oleic): ~65% oleic acid. Intermediate grade.
Conventional (High Linoleic): Traditional variety. ~65% linoleic acid (omega-6). Less stable — limited shelf life for frying applications.
RBD (Refined, Bleached, Deodorised): Standard traded form for food manufacturing.
KEY USES
Cooking oil (primary use): Light, neutral flavour — popular in Europe, Middle East, Africa
Food manufacturing: Snack frying, margarine, salad dressing, mayonnaise
Industrial: Biodiesel (minor), lubricant base (HOSO)
Personal care: Skin moisturiser, hair care
BLACK SEA DOMINANCE RISK
Ukraine: World's largest sunflower oil exporter (~45% of global trade)
Russia: Second largest (~17%)
The 2022 Russia-Ukraine war caused sunflower oil prices to spike 60%+ in weeks, triggering panic buying globally and substitution into palm oil. This geographic concentration is a key price risk.
TRADE CORRIDORS
Major exporters: Ukraine, Russia, Argentina, EU (minor)
Major buyers: India (world's largest importer), China, EU, Middle East, Africa
Tetra relevance: Supply disruption risk from Black Sea. Southeast Asia and East Africa use sunflower oil in food manufacturing.
PRICING BASIS
Correlates with palm oil and soybean oil (competing cooking oils). No dedicated futures exchange — spot assessed by Oil World, USDA, and Platts. FOB Black Sea (Ukraine) is primary pricing hub.
SPECIFICATIONS (RBD Sunflower Oil)
FFA: max 0.1%
Moisture: max 0.1%
Colour (Lovibond 5.25"): max 20 Yellow / 2 Red
Phosphorus: max 5 ppm
Iodine Value: 118–141 (conventional), 78–90 (HOSO)
Peroxide value: max 10 meq/kg