Moldova may increase imports of Ukrainian sunflower seed due to price gap

Moldova may increase sunflower seed imports from Ukraine due to a significant gap in domestic prices. In early October, Ukrainian sunflower seed remained around 2,000 Moldovan lei/t cheaper than local supplies, making imports economically attractive for Moldovan crushers even after logistics costs are taken into account.

Sunflower seed prices in Moldova are under pressure from weak demand, difficult export logistics and accumulated trader stocks. Purchase prices across the country range from roughly 8.3 to 9.6 thsd lei/t, with the highest levels seen near processing plants and the port of Giurgiulesti.

Sunflower seed exports are being constrained by low water levels on the Danube, limiting port access to only some shallow-draft barges. Road logistics are also congested, with truck queues forming on routes toward Romanian ports. As a result, some traders have accumulated significant volumes of previously contracted grains and oilseeds in storage.

Moldovan traders are already sending part of their sunflower seed to local plants for toll processing, with crude sunflower oil subsequently exported. Cheaper Ukrainian raw material could provide an additional source of supply for local crushers, especially if the price gap between the two countries persists.

Moldovan farmers are concerned about stronger competition from Ukrainian sunflower seed and are hoping for an extension of the agricultural import licensing regime. However, market participants acknowledge that even with licensing in place, imports from Ukraine may remain economically attractive for local processors.

Tags: Ukraine, sunseed, imports, Moldova