Ukraine cuts sunflower oil exports by 24% due to high raw material prices and low vegetable oil prices

In MY 2024/25 (as of March 1), Ukraine decreased sunflower oil exports by 24% to 2.4 mln tonnes compared to the same period last season, the lowest level since MY 2016/17.

The main buyers of Ukrainian oil remained the EU countries, which accounted for 54% of total exports. For the first time in the last three seasons, India became the leader among the importers of domestic sunflower oil, purchasing 417 thsd tonnes, which is five times higher than the same period last season.

In February, the export of sunflower oil decreased compared to January by 14% to 325 thousand tons, which is the lowest figure for this month in the last 10 years.

Overall, oil exports remain weak as Ukrainian crushers are unable to secure stocks of raw materials for stable operation for several months, leading to a drop in refining margins to zero or even negative values amid sharp price fluctuations.

During the week in Ukraine, demand prices for sunflower oil decreased by 5-10 USD/t to 1110-1115 USD/t with delivery to the Black Sea ports amid falling prices for palm and soybean oil and the collapse of oil prices.

At the same time, the processors keep the purchase prices for sunseed with 50% oil content at a high level of 26500-27500 UAH/t with delivery to the plant, hoping for the recovery of oil prices in the second half of the season.

The new US Administration continues to destabilize global trade. Experts have already started talking about the recession of the US economy, which led to a further decline in oil prices to the level of $70/barrel (-7.9% for the month).

on Friday, the April futures for palm oil on the Bursa exchange rose 3.2% to a 2-week high of 4625 ringgit/t or 1044 $/t in anticipation of the report of the Malaysian palm oil Board (MPOB), which will be released on March 10 and may confirm the decline in oil reserves in the country.

the May futures for soybean oil on the Chicago stock exchange for the week fell another 1.6% to 956 $/t (-6.5% for the month), and started Monday with a new decline.

Beginning of the harvesting of sunflower and increased supply of sunflower oil from Argentina in the coming months may close the needs of importers, especially India, which will limit the potential for price increases in the short term. In addition, this week, the USDA is to update the global balance sheets, which may lower estimates of global demand for vegetable oils and increase stock forecasts.

Tags: prices, sunseed, Ukraine, sunflower oil, export