Sunflower oil represents about 12% of vegetable oils trading volumes, and despite being impacted by similar market trends, the correlation with the other vegetable oils is not sufficient to effectively use the existing price risk management tools for hedging exposure to sunflower oil. As a result, Platts FOB Black Sea Ukraine sunflower oil price assessment and CME Group FOB Ukraine sunflower oil futures can cope with these challenges and close the gaps in mitigating risk in this market.
The Black Sea region covers 80% of the global exports of sunflower oil, with Ukraine accounting for over 55%. The strong correlation between Russian and Ukrainian sunflower oil prices allows Platts sunflower oil FOB Black Sea Ukraine to reflect the price dynamics in the global sunflower oil market and be an efficient tool to manage risks.
In this volatile market, a robust and transparent physical price representing the specific dynamics of regional markets and which leads to physical indexation and financially settled derivative instruments is a powerful tool which helps customers and other market participants:
- — Manage and hedge price risks
- — Leverage arbitrage opportunities
- — Carry out negotiations more profitably and efficiently
- — Make better-informed planning and trading decisions