Sunseed prices in Ukraine reached 31,000 UAH/t, but they are limited by the stabilization of sunflower oil prices

Processors in Ukraine continue to experience a shortage of sunseed supply, so they are actively raising purchase edible prices, taking advantage of high oil prices and significant export demand. The increase in the cost of diesel fuel has practically stopped transportation across Ukraine, which is also negatively affecting supplies.

Forecasts of a sharp increase in vegetable oil prices due to the war with Iran have not come true, and prices remain fairly stable , and news of negotiations between the US and Iran is pushing oil prices down, so we can expect a slight decrease in vegetable oil prices as well.

During the week, purchase prices for sunflower seeds in Ukraine increased by 500-700 UAH/t to 30,500-31,500 UAH/t (for 50% oil content) with delivery to the plant, while dollar prices rose by 10-15 $/t to 610-630 $/t excluding VAT. The dollar exchange rate on the interbank market decreased by 20-30 kopecks and ceased to support hryvnia prices.

Demand prices for Ukrainian sunflower oil increased by $10/t to $1,290-1,300/t for delivery to Black Sea ports during the week, which further supported sunseed prices.

Argentina has threshed 50-60% of its sunflower acreage as of March 20 and will complete harvesting by mid-April. It continues to actively ship sunseed to Bulgaria under previously concluded agreements, but already in the third batch of sunflower seeds delivered, elevated levels of pesticides were found, in particular, the amount of deltamethrin was twice the norm. So far, Bulgaria has received about 120 thousand tons of the contracted 600 thousand tons, and it can be expected that part of the oil and meal will not enter the European market, but will be offered on the Black Sea market at reduced prices, which will increase competition for Ukrainian and Russian oil.

We can advise Ukrainian farmers to actively sell sunflower seeds, taking advantage of high prices and not waiting for a collapse in oil prices.

Tags: Ukraine, prices, sunseed