Sunseed prices in Ukraine fall following the fall in vegetable oil prices

Yesterday, Trump announced a 90-day deferral of tariffs on all countries except China, effectively “pausing” the trade war against the world. But the escalation between the US and China continues to weigh on oil prices, given the potential for a drop in global demand as both countries’ economies slow.

Following oil quotes, prices for biofuels and vegetable oils continue to fall, leading to lower prices for sunflower oil and sunseed in Ukraine.

June Brent crude futures, after falling 25% over the past two weeks, rose 3.6% yesterday to $65.3/barrel (-14.8% for the week).

June palm oil futures on the Bursa Malaysia exchange fell 4.5% to 4,146 ringgit/t or $923/t on Monday (-8.9% for the week) following the drop in oil prices. On the Dalian exchange, the most active soybean oil contract fell 0.89% yesterday, while palm oil CPO1 fell 1.9%.

May soybean oil futures on the Chicago Board of Trade, after falling 7.8% over the previous 7 days, rose 2.7% yesterday to $1,018/t (+9.2% month-on-month) on expectations of an increase in government subsidies for biodiesel production in the US in 2026.

In Ukraine, export demand prices for sunflower oil decreased by $5-10/t per week to $1,120-1,125/t with delivery to Black Sea ports, and by $25-30/t to $1,150-1,180/t with delivery to EU countries, where prices for rapeseed oil and biodiesel fell sharply.

Purchase prices for sunseed with 50% oil content have fallen by 500-800 UAH/t since Monday to 26,000-26,400 UAH/t with delivery to the plant. At the same time, some plants continue to be idle due to low processing margins due to high sunflower prices and prospects for a further drop in oil prices.

Export demand prices for sunflower meal in Black Sea ports remain at a low level of $215-220/t.

Many oil buyers have stopped purchases in anticipation of market stabilization and understanding the trend of oil prices, which will depend on reaching an agreement between China and the US. Therefore, we should not expect an increase in sunflower prices in the near future, and further escalation between the US and China will only exacerbate the decline in demand and the approaching global crisis.

Tags: Ukraine, sunflower oil, prices, sunseed