Ukraine sets minimum sunflower oil export price $225/t above market

Ukraine’s Economy Ministry has set the minimum allowable export price for sunflower oil on a CPT basis at $1,350/t. At the same time, actual offers on the Ukrainian market are around $1,125/t, or approximately $225/t lower, according to market participants.

The minimum prices were approved by Economy Ministry Order No. 1369 dated September 10, which took effect on September 11. Traders and representatives of processing companies say the established level does not reflect current conditions on the physical market.

According to market participants, Ukrainian sunflower oil is offered at around $1,360/t CIF Turkey, while FOB six-port quotations are around $1,385–1,390/t. Russian sunflower oil is trading at $1,306–1,310/t, while some deals for shipments to China have reportedly been concluded at around $1,250/t.

Traders have also raised questions about the minimum export price on an FAS basis, which was set at $873/t. Market participants are calling for a review of the calculation methodology and clarification of which transactions and quotations were used as the basis for determining the minimum prices.

Due to the gap between the minimum export prices and actual market levels, traders and processors are already facing difficulties in arranging shipments. According to market participants, contracts, products and buyers are available, but actual transaction prices may be below the minimum level set by the government.

Tags: Ukraine, sunflower oil, export, prices