Purchase prices for sunflower seeds in Ukraine continue to fall

Purchase prices for new-crop sunflower seed in Ukraine fell by UAH 500–1,000/t over the week to UAH 18,700–19,500/t including VAT, delivered to crushing plants in central Ukraine. In dollar terms, prices are around $370–385/t excluding VAT. The market is under pressure from increasing new-crop supplies and lower sunflower oil prices.

Bid prices for Ukrainian sunflower oil fell by $30–40/t over the week to $1,200–1,220/t delivered to Danube ports. Russian sunflower oil for September-October delivery also declined by $30–40/t to $1,250–1,260/t FOB. In India, bid prices dropped by $30/t to $1,440/t CIF Mumbai amid increasing supplies from the Black Sea region.

Limited export capacity for processed products is putting additional pressure on domestic prices. In August, Ukraine exported only 147 thsd tons of sunflower oil and 110 thsd tons of sunflower meal. Under these conditions, crushers are reluctant to build large feedstock inventories and expect further pressure on purchase prices.

Export bid prices for Ukrainian sunflower seed delivered to Bulgaria fell by $10–15/t over the week to $550–560/t. The market is facing increasing supplies from both Ukrainian and Bulgarian producers. At the same time, licensing requirements for shipments to Bulgaria are somewhat slowing new-crop exports.

Sunflower seed exports at the beginning of the season could provide some support to Ukrainian producers and limit further declines in domestic prices. However, an expected increase in logistics costs in October-November could put additional pressure on export prices.

Tags: Ukraine, prices, sunseed