Rising sunflower oil and meal prices support sunseed prices in Ukraine

Dry and warm weather in Ukraine accelerates sunseed harvesting but reduces the yield potential. As of September 5, from 780.8 thousand hectares or 16% of the area has already harvested 1.39 million tons of sunseed with a yield of 1.78 t/ha.

Demand price of sunflower oil delivered to ports for the week increased by 10 $/t to 920-930 $/t, while on the border Ukraine-Poland prices fell to 910-915 $/t, although in August the demand price on the Western borders exceeded the port. the Increase in supply of rapeseed oil in the EU has significantly reduced the demand for Ukrainian oil from biodiesel producers, which actively imported it during the summer. Therefore, in August, the export of sunflower oil from Ukraine decreased by 48% compared to July to 227 thsd tonnes, the lowest level since June 2022.

Export prices for sunflower meal with delivery to ports during the week increased by 5 $/t to 190-195 $/t amid rising prices for feed wheat and corn. But the number of offers of rapeseed and soybean meal on the world market is growing, so the price increase will soon stop.

Demand price of sunseed is also growing, and during the week increased by another 500-1000 UAH/t to 20,000-20,800 UAH/t with delivery to the plant, as more and more plants start processing, and farmers are holding back sales.

December futures for soybean oil on the Chicago stock exchange during the week fell by 2.4% to 905 $/t (+2.8% for the month), recovering from the August fall to multi-year lows.

Now the price of sunseed exceeds the price level that guarantees a margin to processors, so they will be forced to lower purchase prices, if the quotations for meal and oil on the world market will not increase significantly.

Tags: Ukraine, prices, sunseed, sunflower meal