Slight increase in sunflower oil prices has supported sunseed prices in Ukraine, but they are limited by falling rapeseed prices

Increased export demand for sunflower oil in Ukraine led to an increase in its prices in Black Sea ports by $10-15/t to $1,120-1,130/t, which activated the purchase of sunseed by processors. Against the background of the strengthening of the euro against the dollar, demand prices from the EU increased to $1,160-1,200/t with delivery to Bulgaria or Greece, however, further price growth is limited by a fall in quotations for rapeseed and rapeseed, soybean and palm oils.

Purchase prices for sunseed with 50% oil content remained at 26,500-27,500 UAH/t delivered to the plant amid increased competition between processors, but small plants continue to idle due to low processing margins. Processors pay a premium of 5,500-6,000 UAH/t for VO sunflower due to the high premium for high-oleic oil.

Demand for Ukrainian sunseed from European processors is almost non-existent, particularly in Bulgaria, where factories are idle due to the lack of raw materials, which are economically inexpedient to import from Ukraine. Some factories have switched to processing rapeseed, especially against the backdrop of a collapse in its prices during March from 530 to 488.5 €/t following the quotations for canola in Canada after Trump introduced import duties.

In the MY 2024/25, about 60.5% of sunseed imports to the EU were supplied from Moldova. During the week, sunflower prices in Moldova fell by 6% to $606/t due to increased offers ahead of spring agricultural work.

May soybean oil futures on the Chicago Board of Trade fell another 4.6% to $916/t in a week, losing 14% in a month amid the US trade wars against Canada and China, which significantly affected sunflower oil prices.

April palm oil futures on the Bursa exchange fell 1% for the week to 4,576 ringgit/t or $1,030/t on forecasts of a recovery in production after the floods in March.

Export ask prices for Russian sunflower oil for March delivery have increased to $1,100/t FOB, and offer prices to $1,115/t FOB, while for May-July delivery, ask and offer prices remain at $1,065/t and $1,085/t, respectively. Against the backdrop of significant stocks at farmers and low processing margins, sunflower prices may fall significantly over the next month, especially as many plants switch to processing soybeans and rapeseed, which reduces demand for sunflower.

After a two-year hiatus, the Turkish Grain Agency (TMA) will hold an international tender on March 20 for the purchase of 18,000 tons of unrefined sunflower oil with delivery on April 2-21 to the ports of Iskenderun/Mersin (four batches of 3,000 tons each) and Tekirdag (two batches of 3,000 tons each), which will become a price indicator for the market.

Tags: prices, sunseed, Ukraine, sunflower oil