Russian Sunflower Oil Output Up 3.2% in Early 2025

• Production growth: Russian unrefined sunflower oil output rose 3.2% year-on-year to 1.3 million tons in Jan–Feb 2025, reinforcing export availability.
• Strong February momentum: February sunflower oil production climbed 13% year-on-year to 0.7 million tons, with a 1.5% month-on-month increase, signaling steady crush activity.
• Margarine weakness: Margarine production dropped 19.7% to 68,500 tons in the first two months, highlighting softer domestic demand in downstream fats.
• Price pressure risk: Higher sunflower oil supplies during the key Q1 export window could weigh on Black Sea FOB prices if demand and logistics remain unchanged.

Russian Sunflower Oil Output Climbs 3.2% in Early 2025

Russia’s oil and fat industry produced 1.3 million tons of unrefined sunflower oil in January–February 2025, up 3.2% versus the same period in 2024, according to Rosstat data reported by Finmarket. The figures indicate stable crush activity and sufficient availability of sunflower seed from the 2024 harvest.

February performance was notably stronger, with output reaching 0.7 million tons. This represents a 13% year-on-year increase and a 1.5% rise compared with January 2025, suggesting Russian crushing plants maintained firm operating rates through the winter period and were able to support the seasonal export window.

Margarine Production Trends

In contrast to sunflower oil, Russia’s margarine segment showed significant weakness. Total margarine production in the first two months of 2025 fell 19.7% year-on-year to 68,500 tons. February output dropped 20.5% versus a year earlier to 37,600 tons, although it rebounded 15.5% compared with January 2025 levels, pointing more to demand-side softness than to processing constraints.

Market Impact and Price Outlook

Higher sunflower oil output during Q1 reinforces Russia’s role as a key Black Sea supplier. If domestic consumption of vegetable oils and fats remains stable and export logistics continue to function normally, the additional volumes may exert downward pressure on sunflower oil export quotations. Traders will closely track whether elevated production persists into March–April, as sustained growth could influence Black Sea FOB benchmarks and potentially widen spreads versus competing origins.

The downturn in margarine output likely reflects shifting domestic demand patterns rather than reduced capacity, especially given the robust supply of upstream sunflower oil. This divergence underscores changing consumer and industrial usage within Russia’s oil and fat complex.

Production Data Overview

Source: Market Data