Sunseed prices in Ukraine fell under pressure from falling prices for oilseeds

The global vegetable oil market remains under pressure from increased supply and reduced demand in physical markets, despite high oil prices. In India, the economic situation continues to deteriorate due to rising oil prices, so the demand for oil is decreasing, which leads to a decrease in prices and negatively affects the prices of sunflower oil and seed in Ukraine.

During the week, prices for sunflower oil delivered to India fell by another $10/t to $1,390-1,400/t CIF Mumbai, which reduced prices for Russian sunflower oil by $10/t to $1,285-1,290/t FOB and demand prices for Ukrainian sunflower oil delivered to the Black Sea port by $5-10/t to $1,315-1,320/t.

The decline in processing margins and the shutdown of some factories in the south due to shelling reduce the purchasing activity of processors and reduce competition for volumes, which leads to a drop in prices.

During the week, sunseed demand prices in Ukraine fell by 1,000-1,500 UAH/t to 31,000-32,500 UAH/t or $620-650/t excluding VAT (for 50% oil content), although last week they reached the maximum level this season of 34,000-34,300 UAH/t.

Additionally, oilseed prices are being pressured by the USDA’s rather optimistic forecast for production in the new season, where global sunflower production is expected to grow by 13% and soybeans by 3.5% due to increased acreage and good yields.

Currently, the weather is favorable for sowing sunflower in the Black Sea region and soybeans in the US.

Tags: Ukraine, prices, sunseed