Sunseed prices in Ukraine have stabilized, but they may decline following the fall in vegetable oil prices

During the week, palm and soybean oil quotes fell by 6.7% and 4.5% respectively following a 15% drop in oil prices, which is adding pressure to sunflower oil prices, which have so far refrained from falling.

Prices for sunflower oil delivered to India remained at $1,430-1,435/t CIF Mumbai during the week, and demand prices for Ukrainian sunflower oil were at $1,300-1,310/t for delivery to Black Sea ports.

At the same time, purchase prices for sunseed in Ukraine increased by another 200-500 UAH/t during the week to 31,500-32,000 UAH/t or $635-645/t excluding VAT (for 50% oil content) with delivery to the plant, which reduced the processing margin and led to the suspension of purchases by some traders in anticipation of a market turnaround.

Lower feed grain prices will increase pressure on meal prices, which will also reduce sunflower processing margins.

Argentina, as of April 10, has threshed 90% of its sunflower acreage and continues to increase supplies of sunflower oil, the offer prices of which have decreased to $1,280-1,290/t FOB, which also increases pressure on the prices of Black Sea sunflower oil.

In Ukraine, farmers continue to hold back on sunseed sales in hopes of further price increases, but reduced demand and increased competition from Argentine oil will continue to push down sunflower oil prices, leading to lower sunflower prices in the coming weeks.

Tags: edible oils, prices, sunseed, margin