New-crop sunseed in Ukraine is priced well below old-crop levels

Ukraine’s sunflower seed market is rapidly shifting from high old-crop prices to significantly lower purchasing levels for the new crop. According to Spike Brokers, the CPT plant purchasing index fell by another $110/t over the past week to $440/t. A week earlier, it had already dropped by $130/t to $550/t as the market shifted to new-crop pricing.

As a result, crushers’ sunflower seed price indication has fallen by around $240/t in just two weeks, from $680/t to $440/t. High prices at the end of the old-crop season were supported by limited feedstock availability, while crushers are now anticipating new-crop arrivals and are unwilling to carry the previous price premium into the new season.

Meanwhile, global markets moved in the opposite direction over the past week. September soybean oil futures on CBOT gained 1.20 cents to 69.44 c/lb, while WTI crude oil rose by $4.22 to $82.40 per barrel. However, this external support has yet to translate into Ukrainian sunflower seed prices, with the domestic market currently driven primarily by the transition to the new crop and export logistics.

Uncertainty over exports of processed products is also making Ukrainian crushers more cautious. Problems with maritime logistics are forcing plants to factor higher future costs of exporting sunflower oil and meal into their purchasing decisions, limiting their willingness to aggressively build feedstock stocks. As a result, the new season could begin with sunflower seed purchasing prices significantly below the levels farmers saw at the end of the previous season.

Tags: prices, sunseed, Ukraine, sunflower oil, export