Sunseed prices in Ukraine remain high, but demand continues to decline

The decline in world prices for vegetable oils will continue in June and July due to a seasonal increase in supplies of soybean oil, and later rapeseed oil, which will reduce demand for expensive sunflower oil and lead to a drop in sunseed prices in Ukraine.

Last week, Russia again attacked the oil extraction plant of the American company ADM in Chornomorsk with drones. Experts are not sure that its work will be restored in time for the start of the season, so the decrease in the number of processing plants remains the main reason for the decline in demand for sunseed.

During the week, purchase prices for sunseed (with 50% oil content) in Ukraine remained at the level of 31,300-33,000 UAH/t, but against the background of the devaluation of the hryvnia, dollar prices decreased by $10-15/t to $615-650/t excluding VAT.

During this period, demand prices for sunflower oil in India remained at $1,410-1,415/t CIF Mumbai, although prices for Russian sunflower oil decreased by $10-15/t to $1,285-1,290/t FOB, and for Ukrainian – by $5-10/t to $1,320-1,325/t DAP – Black Sea ports.

Cheap soybean oil from Brazil and Argentina continues to dominate global markets, so buyers are quite cautious about buying large batches of expensive sunflower oil from Ukraine, especially given the constant risks of shelling of ports and ships. Therefore, demand for Ukrainian sunflower oil remains mainly for container deliveries or shipments to the EU.

Both Ukraine and the Russian Federation are experiencing favorable weather conditions with periodic rains, which could lead to an increase in sunflower sowing areas and harvest in the new season. This also increases pressure on the prices of sunflower oil from the new harvest.

Tags: Ukraine, prices, sunseed