Demand from Turkey and India supports prices for Ukrainian sunflower oil, while EU buyers reduce purchases

In Ukraine, demand for sunseed from processors remains quite high, as increased demand for sunflower oil from Turkey and India is expected in May.

During April 18-24, the demand prices for Ukrainian sunflower oil increased by $5/t to $1,190/t CIF Mersin and $1,200/t CIF India, while the offer prices on these bases were $1,195/t and $1,220/t, respectively.

At the same time, analysts predict that demand from Italy and Spain, which have traditionally purchased Ukrainian oil, will remain low. Last time, Spanish buyers offered $1,190/t CIF for oil, while Italian buyers did not send any applications at all.

According to brokers, prices for sunflower oil in the ports of Odessa remained stable at $1,130-1,140/t DAP during the week.

Prices for sunflower seeds with an oil content of 50% also remain unchanged at 26,500-27,500 UAH/t including VAT with delivery to the factory.

In Russia, prices for sunflower seeds and sunflower oil decreased slightly during the week, but the processing margin remains negative, so analysts expect a sharp drop in sunseed prices after the completion of sowing, given the increase in sown areas.

According to OleoScope, the price of Russian sunflower oil for delivery in April-May is $1,125/t FOB, but oilseed stocks in the country are 11% higher than last year, so processors have the necessary amount of raw materials and are lowering prices to actively compete with Ukrainian oil in the markets of Turkey and India.

Tags: Ukraine, sunflower oil, prices