Despite the drop in prices, the rate of sunflower oil exports from Ukraine remains high

According to Shareuapotential, Ukraine exported 453,000 tons of sunflower oil in May, which is 91,000 tons lower than this year’s record April figure, and in general, in 2022/23 MY, edible oil exports reached 4.2 million tons (3.6 million tons for this last year’s date). Turkey remained the main buyer of domestic oil in May.

Despite the interruption in the work of the grain corridor, the rate of oil exports is very high and actually exceeds forecasts. Previously, the export of sunflower oil from Ukraine in 2022/23 MY was estimated at 4.5 million tons. However, in the case of shipment during June-August, an average of 150-200 thousand tons of oil, the export forecast can be increased to 4.7-4.8 million t.

Purchase prices for crude sunflower oil during the week fell by another $50-60/t to $710-720/t for deliveries to the Danube ports, and to $800-820/t DAP Italy, Germany for deliveries to the EU.

Black Sea port blockades are slowing down shipments of meal and oil to major buyers India and China, while shipments to the EU have virtually ground to a halt due to a lack of demand.

Sunflower exports in May amounted to 46 thousand tons compared to 39 thousand tons in April and 200 thousand tons in March, and in general in 2022/23 MY reached 1.9 million tons against a forecast of 2 million tons. A reduction in sunflower exports will lead to a decrease in margins processors, starting from the 2nd quarter of the current year.

Purchase prices for sunseed fell by UAH 500-1,000/t during the week to UAH 13,000-14,000/t with delivery to the plant, as processors are shutting down their businesses with significant remaining unsold oil.

According to the forecast of the Ukrainian Grain Association, in 2023 the sunflower sowing area in Ukraine will increase by 800 thousand hectares, thanks to which the harvest will grow to 12.7 million tons (11.1 million tons in 2022 and 16.9 million tons in 2021). of which 1.2 million tons will be exported. Rapeseed harvest is estimated at 3.8 million tons, and its export – at 3.5 million tons, soybean harvest – at 4.4 million tons, and its export – at 3 million tons.

Tags: Ukraine, sunflower oil, export, prices