Sunseed prices in Ukraine are falling as the rapeseed processing season begins

As we predicted, the low supply of sunseed in Ukraine at the end of the season led to the shutdown of some plants, while those enterprises that have the ability to process rapeseed are beginning preparations for its acceptance, which reduces demand for sunseed and, accordingly, affects prices.

During the week, purchase prices for sunseed in Ukraine sharply decreased by 500-1000 UAH/t to 32,000-33,000 UAH/t (oil content 50%) with delivery to the factory.

Export demand prices for sunflower oil remain at a high level of $1,330-1,345/t delivered to ports, while supply prices for Ukrainian sunflower oil have increased to $1,370-1,385/t FOB and significantly exceed prices for Russian sunflower oil (which is $1,300/t FOB) and Argentinean sunflower oil ($1,270-1,300/t FOB).

Favorable weather with low temperatures and precipitation forecast for the coming days in Ukraine and Russia are improving the potential of the sunflower harvest, which is putting pressure on the prices of the new harvest and reducing demand for supplies of sunflower oil from the old harvest.

In the EU, a heat wave is reducing the potential yield of spring crops, but the forecast for sunseed production remains at 9.6-10.2 million tons, which will exceed the previous season’s figure by 1.2-1.7 million tons due to an increase in sowing areas.

Tags: Ukraine, prices, sunseed