Sunseed prices in Ukraine are rising following vegetable oil prices and amid a sharp decline in EU production

Rise in prices for palm oil supports prices for soybean and sunflower oil, which leads to higher purchase prices for sunseed in Ukraine.

For two weeks of speculative growth, palm oil futures in Malaysia rose by 15% to 1179 $/t, and soybean oil in Chicago – by 14.3% to 1060 $/t, while according to Trading Economics, the average price of sunflower oil for delivery to buyers increased by 5.5% to 1350 $/t (+12% per month).

In Ukraine, the price of sunflower oil in the ports of the Black sea during the week increased by another 20-30 $/t to 1130-1150 $/t, while the price of meal decreased by 3-5 $/t to 195-210 $/t amid falling corn prices.

Decline in oil prices has not yet affected the quotations of palm oil, 20-40% of which is used for the production of biodiesel. However, in the future, low oil prices will lead to a significant drop in oil prices.

January futures for Brent crude oil for two sessions fell by 5.3% to 71.8 $/barrel (+1.4% for two weeks).

Purchase prices for sunflower with an oil content of 50% in Ukraine increased by another 500-1000 UAH/t over the week to 27000-27500 UAH/t with delivery to the plant. For oil content over 50%, processors offer a premium of 250-300 UAH per 1%, so the price may exceed 28000 UAH/t.

The prices for high oleic sunflower amid limited supply already exceed 30,000 UAH/t with delivery to the plant.

In the latest report, the USDA experts left the forecast of sunseed production in Ukraine at 12.5 million tons, although as of November 8, only 9.7 million tons of sunflower were harvested from 4.7 million hectares or 95% of the area with a yield of 2.06 t/ha.

Forecast of sunseed production in the EU experts USDA lowered to 9.43 million tons (10.125 million tons last year), while the European Commission estimated it at 8.1 million tons, which is 17% below the harvest in 2023 and will be the lowest since 2015, despite the increase in planted areas.

Amid a sharp decline in sunseed production in Romania and Bulgaria, the price of sunflower rose from August 450-460 $/t to 610-620 $/t for delivery to the plant in November.

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Tags: EU, prices, sunseed, Ukraine, Bulgaria, Romania