Ukraine. Sunflower oil mills operate without stocks: sunseed prices are heading for a historic high

Oilseed mills are running out of stocks: sunseed prices are heading for historic highs The shortage of sunseed in Ukraine continues to push prices up. Due to a decrease in production of this oilseed compared to last year, Ukrainian mills are experiencing a shortage of raw materials. This was reported by analysts of the agricultural cooperative PUSK, established within the VAR

“The price of sunflower has already exceeded 23 000 UAH/t, and according to the seasonal model, the average price may reach 24 000-24 500 UAH/t at the end of October. This is due to a large number of contracts for oil in the face of a shortage of raw materials,” the PUSK said. The factories failed to accumulate stocks, as it was before.

“Most oilseed crushers are operating on a rolling basis, i.e. they buy sunflower and immediately send it for processing. If earlier the processors had stocks for October-November, now many companies do not have enough even for the current month. This leads to higher prices and fierce competition between plants trying to buy the required amount of sunseed,” adds the analytical department of PUSK.

Given the current trends and seasonality of the market, PUSK analysts expect new record prices that may exceed the historical highs recorded in 2020.

Tags: Ukraine, prices, sunseed