Trump’s sanctions are shaking up the edible oil market: what does this mean for Ukrainian sunseed?

The expected rise in Ukrainian sunseed prices was influenced by new US trade restrictions. Donald Trump, the president of the United States, announced his intention to introduce additional duties on goods from Europe, Mexico, Canada and China. The decision caused an immediate reaction on the stock exchanges and changed the balance on the market of vegetable oils, in particular soybean and sunflower. This is reported by analysts of the PUSK agricultural cooperative, created within the borders of the VAR.

“It would seem that everything was going well: seasonal factors supported the growth trend. However, the news about possible tariffs on European goods turned the situation around. The price of soybean oil has fallen sharply over the past few days, and this affects the sunflower oil market as well. We have already lost approximately $5-10 dollars per ton of soybeans. There were expectations that the market will reach the level of UAH 29,000-29,500 / ton. Now this probability decreased

The sunseed market is entering a period of instability. “If soybean oil continues to fall, then sunflower oil may lose another $10 per ton in the coming days. This will entail sunflower as well, already this week there may be a further decrease of UAH 200-300/t”, analysts add. Despite the negative factors, Ukrainian sunseed can derive some benefit from the trade war.

“American soybean oil may actually disappear from the European market or reduce its presence to a minimum. This means that Europe will look for an alternative – perhaps in Argentine soybean oil, perhaps in palm oil. But part of the demand will also switch to sunflower oil,” PUSK notes.

Tags: prices, sunseed, Ukraine