Sunseed trade volumes have increased in Ukraine, but prices remain stable
The completion of sowing and favorable weather for sowing in Ukraine are forcing farmers to intensify sunseed sales, without waiting for the coveted 30,000 UAH/t. This increases the supply of Ukrainian sunflower oil on the world market, which remains under pressure from significant stocks and low demand from importers.
In Ukraine, export prices for sunflower oil have decreased by $10/t to $1,110-1,115/t delivered to Black Sea ports and to $1,120-1,150/t DAP Germany and Macedonia, as the supply of rapeseed and soybean oil in the EU increases and oil prices fall. At the same time, prices for Russian sunflower oil remain at $1,120-1,125/t FOB and $1,200/t CIF Mumbai.
Export demand prices for sunflower meal in Black Sea ports fell by $5/t to $215-220/t in a week, while prices for May deliveries CIF-France are $248-250/t. The decline in prices for feed wheat and corn is increasing pressure on meal prices, which will be reflected in sunflower prices in June.
During the week, prices for sunseed with 50% oil content remained at 26,000-26,700 UAH/t ($550-565/t excluding VAT) delivered to the plant. Processors have already purchased significant volumes of sunseed, sufficient to supply the plants until the start of rapeseed processing.
According to the Ministry of Agrarian Policy, as of May 16, 3.9 million hectares or 77% of the planned area (4.6 million hectares last year) had been sown with sunflower in Ukraine. The weather is conducive to the completion of sowing, and rains next week will improve the condition of the crops and the prospects for the future harvest, which will be a strong factor in pressure on prices.
It is worth noting that in Ukraine, Kazakhstan, and Russia, areas under lost winter crops are replanted mainly with sunflower, so in early June, sowing data may show an increase in sunflower areas in the main producing countries by 10-15%, which will increase pressure on forward prices for sunflower oil.
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