Sunflower seed prices in Ukraine continue to decline despite rising exports

Sunflower seed purchase prices in Ukraine fell by another UAH 500/t over the past week to UAH 15,000–16,000/t including VAT, or $280–340/t excluding VAT, delivered to processing plants for seeds with 48% oil content. The main factors remain increasing new-crop supplies, limited demand from processors and rising logistics costs. Meanwhile, stronger sunflower seed exports are partially preventing a further decline in domestic prices.

As of October 30, Ukrainian farmers had harvested 10.339 mln tons of sunflower seeds from 4.65 mln hectares, representing 89% of the planned area. The average yield reached 2.22 t/ha, compared with 1.84 t/ha a year earlier. Despite increasing harvest volumes, some oilseed crushing plants remain idle, while others hold substantial inventories of raw materials and finished products, limiting their willingness to make additional purchases.

During October 1–29, Ukraine exported 57.3 thsd tons of sunflower seeds, 3.5 times more than the 16.3 thsd tons shipped during the corresponding period of September. The largest buyers were Turkey with 23.5 thsd tons, Italy with 12 thsd tons and Egypt with 5.5 thsd tons. Meanwhile, exports to Bulgaria remain constrained by delays in issuing export licenses. Export bids for sunflower seeds delivered to Turkey remain at $580–600/t, but rising transportation costs have pushed ex-farm bids down to $350–380/t, equivalent to approximately UAH 18,000–19,000/t including VAT.

Ukraine’s sunflower oil exports increased by 84.9% month-on-month in October, rising from 131.7 thsd tons to 243.5 thsd tons. The main destinations were Romania with 37.5 thsd tons, Turkey with 33.8 thsd tons and the Netherlands with 32.1 thsd tons. Sunflower cake exports rose by 14.5% over the same period to 310.4 thsd tons. However, increasing road and rail transportation costs across Ukraine’s western border continue to put pressure on processors. As a result, sunflower oil prices on an FCA plant basis have declined to $900–950/t, with some companies willing to offer additional discounts to accelerate shipments.

Additional pressure on the vegetable oil market comes from declining global crude oil prices, which weaken the price outlook for palm, rapeseed and soybean oils used in biofuel production. This could also weigh on sunflower oil prices, particularly amid expectations of weaker demand toward the end of the year. Nevertheless, export demand for sunflower seeds remains one of the main factors supporting domestic purchase prices in Ukraine.

Tags: Ukraine, sunseed