Variant 1: Lot Size
Sunflower oil is extracted from sunflower seeds (Helianthus annuus) and is widely used for cooking and in cosmetics. As of 2023, Ukraine was the leading producer of sunflower oil. For traders, the standard lot size is 5 MT, making it ideal for managing moderate volumes in sunflower oil trading.
Introduction
Sunflower oil is a widely used edible oil obtained from pressing sunflower seeds, which contain about 48-53% oil. Known for its health benefits, sunflower oil is low in saturated fats and rich in polyunsaturated and monounsaturated fatty acids, as well as vitamin E.
It has good oxidative stability, making high-oleic sunflower oil ideal for industrial frying. In India, the third-largest consumer of sunflower oil globally, demand is primarily met through imports from Ukraine, Russia, and Argentina.
These countries supply around 95% of India’s sunflower oil imports, with Ukraine leading at 70%. Sunflower oil is not only used for cooking but also in products like margarine, salad dressings, cosmetics, lubricants, and in the food processing industry.
Factors that Impact the Sunflower Oil Price
Here are some key factors that impact sunflower oil market prices:
- Global Supply and Demand: The supply and demand for sunflower oil, especially from major producers like Ukraine and Russia, significantly affect its price. Any disruption, such as the Russia-Ukraine conflict, impacts global availability and drives price fluctuations.
- Geopolitical Events: Political instability, wars, and trade disruptions, particularly in sunflower-producing regions like Ukraine, can cause price spikes due to supply shortages, as seen during the ongoing Russia-Ukraine conflict.
- Competition with Other Oils: Sunflower oil competes with other vegetable oils like palm, soybean, and olive oil. Changes in the price or supply of these alternatives can shift demand, influencing sunflower oil prices.
- Weather and Crop Conditions: Poor weather conditions, such as droughts or floods, in key sunflower-growing regions can reduce crop yields and limit supply, driving up prices.
- Transportation and Logistics: Logistics challenges, such as port delays, power shortages, and transportation disruptions, particularly in conflict zones, can affect the timely export of sunflower oil, leading to price changes.
- Global Economic Conditions: Inflation and overall economic health influence purchasing power and the demand for cooking oils, impacting sunflower oil prices globally.
Things to Consider Before Trading in Sunflower Oil
Before entering the sunflower oil trading market, it's important to consider several key factors to make informed choices:
- Market Volatility: Sunflower oil prices can fluctuate widely due to global demand, political events, and currency exchange rates. Understanding how these factors influence price movements is crucial for making informed trading decisions and anticipating market shifts.
- Government Regulations: Policies such as tariffs, subsidies, and environmental rules significantly impact sunflower oil trading. Staying informed about existing and upcoming regulations is key to navigating the market and making strategic choices.
- Economic Indicators: Global economic factors like GDP growth, industrial output, and construction trends are strong indicators of sunflower oil demand. Monitoring these signals can provide insights into potential price changes in the market.
- Investor Behaviour and Speculation: Sunflower oil prices are also influenced by investor sentiment and speculative activities in the commodities market. Recognising how speculation affects prices can help traders manage risks and time their trades more effectively.
Sunflower Oil Expiry Date Calendar 2024
Contract launch calendar for sunflower oil for the year 2024
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June 2024
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How to Trade in Sunflower Oil via Angel One?
To trade sunflower oil on Angel One, follow these simple steps:
- Open a Demat and Trading Account: Begin by creating a Demat and Trading Account with Angel One to facilitate trading.
- Activate the Commodity Segment: Once your account is set up, activate the commodity segment to start trading sunflower oil contracts and other commodities.
- Stay Updated: Keep track of live sunflower oil prices, market trends, and news through exchanges like MCX (Multi Commodity Exchange) and NCDEX (National Commodity and Derivatives Exchange) to stay informed.
- Execute Trades: Use the Angel One platform to place your trades based on your strategy and market analysis.
- Apply Risk Management: Protect your positions by using risk management tools such as stop-loss orders to minimise potential losses and secure your trades.
