Sunseed prices in Ukraine are rising, but farmers expect a level of 28,000 UAH to stimulate sales

In the sunflower market in Ukraine, there is an ongoing confrontation between farmers, who expect maximum prices, and processors, who suffer from low demand for oil and low processing margins, unstable work, and fluctuations in prices for raw materials and finished products.
Last week, in the Black Sea ports of Ukraine, export prices for sunflower oil increased by $10-20/t to $1,080-1,100/t, and for sunflower meal – by $10-12/t to $220-225/t, which allowed to increase the purchase prices for sunflower.
Meal prices were supported by the increase in feed grain prices at ports to $220/t, but they are limited by increased competition from soybean meal, the prices of which continue to fall on the world market.
Sunflower oil prices were supported by a rise in palm oil futures on the Bursa Malaysia exchange, which rose 4% in two weeks to 4,542 ringgit/t or $1,022/t on reduced inventories. However, further gains will be limited by a reduction in palm oil exports in February.
During the week in Ukraine, purchase prices for sunseed with an oil content of 52% increased by 500-1000 UAH/t to 26500-27400 UAH/t with delivery to the factory. Farmers decided that further growth was inevitable and increased their offer prices to the level of 27000-28000 UAH/t FCA.
However, farmers should take into account that due to losses incurred at the beginning of the season and a shortage of raw materials, some factories are considering suspending production until the new season. And a reduction in the number of processors will lead to a decrease in competition and purchase prices for sunseed.
According to experts, about 4 million tons of sunseed remain available for processing in Ukraine, which can be used in 2-3 months at the current processing rate (0.8-1 million tons per month) in the event of an increase in oil prices.
In addition, seasonal sales of agricultural products will begin in the spring on all continents, and South America will increase vegetable oil supplies after harvesting high harvests.
In the event of a cessation of active hostilities in the Russian Federation’s war against Ukraine, oil prices could fall by 3-5%, which will increase pressure on the prices of biofuels and raw materials for their production.
If forecasts of an increase in sunflower sowing areas in Europe, Ukraine, Kazakhstan, and the Russian Federation are fulfilled, then starting in May, sunflower oil prices will come under pressure from expectations of increased production in the next season.
Further development of the grain sector in the Black Sea and Danube region will be discussed at the 23 International Conference BLACK SEA GRAIN.KYIV on April 24 in Kyiv.
Join strategic discussions and networking with industry leaders!
Write to us
Our manager will contact you soon