Processors have slashed prices for new-crop sunflower seeds in Ukraine

Ukrainian crushers have sharply reduced forward prices for new-crop sunflower seed amid the shutdown of crushing plants and export terminals in the south of the country and uncertainty over Black Sea port operations. New-crop sunflower seed prices are currently indicated at UAH 19,000–20,000/t including VAT, or $370–390/t excluding VAT, as market participants do not expect a rapid recovery in seaborne exports.

Old-crop sunflower seed crushing and purchasing in Ukraine have virtually stopped. Only some smaller plants continue to buy sunflower seed for August delivery, but they have cut prices by UAH 2,000–4,000/t over the past week to UAH 25,000–27,000/t. Meanwhile, bid prices for sunflower oil delivered to Danube ports remain at $1,320–1,335/t.

Additional pressure on the sunflower seed market comes from abundant supplies of cheap rapeseed. Crushers in central and western Ukraine are buying rapeseed at around UAH 20,000–21,500/t delivered to the plant and have already secured crushing programs through late October-November. Strong rapeseed crushing margins are reducing plants’ need to purchase sunflower seed in the coming months.

The situation is further complicated by limited opportunities to export vegetable oils and meal across Ukraine’s western border. Higher logistics costs and the risk of prolonged disruption to Black Sea exports are being factored into crushers’ purchasing programs. At the same time, sunflower oil delivered to the EU has fallen to $1,280–1,330/t amid increased supplies of Ukrainian rapeseed oil, offered at around $1,200–1,250/t at the EU border.

However, market participants do not expect another sharp decline in sunflower seed and rapeseed prices. Restrictions on grain and vegetable oil exports through Ukrainian and Russian Black Sea ports could support global prices and demand for Ukrainian products that can still be shipped to or via the EU. Further price dynamics will largely depend on shipping security and prospects for the resumption of Black Sea port operations.

Tags: Ukraine, prices, oilseeds, sunseed