Sunseed prices in Ukraine reached UAH 21,000 per tonne delivered to the plant

A sharp rise in export prices for sunflower oil and meal led to a 25% increase in purchase prices for sunseed in Ukraine over the month to a three-year high of UAH 21,000 per tonne delivered to the plant. In addition, the price increase was driven by the depreciation of the hryvnia to a record 40.5 UAH per dollar.

During the week, the purchase price of sunseed increased by another 500-1000 UAH/t to 20 300-21 000 UAH/t (including VAT) or 440-460 USD/t amid limited supply from farmers at the end of the season. This week, the market recorded purchases of large volumes at prices of about 20 300-20 600 UAH/t on FCA-farm and EXW elevator.

Export prices for sunflower oil for delivery to the ports of the black sea for the month jumped by $100/t to levels of 890-900 $/t due to a significant increase in exports in may to 720 thousand tons against 626 thousand tons in April due to increased demand from India. the Demand price a week ago reached 920 $/t in the ports of Ukraine and exceeded the demand price with delivery to Bulgaria, which remain at the level of 880-890 $/t.

Demand price of sunflower meal with delivery to the black sea ports rose to 225-230 $/t (+15-18% per month), but now prices have gradually declined to levels of 220-225 $/t amid declining prices for soybean meal on the exchanges.

According to Trading Economics, during the week the average price of sunflower oil for delivery to buyers decreased by 2% to 912 $/t, adding 7.2% for the month.

Export demand prices for sunseed for delivery to DAP Bulgaria remain at 450-460 USD/t, which confirms that the price increase in Ukraine is due to the minimum supply of raw materials at the end of the season.

As of June 5, Ukraine sowed 5.19 mln ha of sunflower, or 98% of the plan, which is almost the same as the planting level as of June 9, 2023 (5.3 mln ha). Weather conditions are generally favorable for the development of crops, although there is a shortage of precipitation in the center and east of Ukraine.

Forecasts of a sharp increase in sunflower and soybean planting areas instead of corn have not yet materialized, so the sunflower harvest forecast remains at the level of last year.

August futures for palm oil on the Bursa exchange in Malaysia remain at a stable level 3960 ringgit/t or 844 $/t, as exporters are trying to maximize supplies to India amid rising prices for sunflower oil and lower prices for soybeans.

July futures for soybean oil on the Chicago stock exchange since the beginning of the week fell by 5.3%, but yesterday won back 2.7% and are trading at the same level as a month ago, 978 $/t.

Argentina is completing the harvest of soybeans, so the supply of soybean oil and meal will continue to grow, which has already felt the Ukrainian sellers of soybean meal amid the lack of demand from Europe.

Tags: prices, sunseed