Ukrainian sunflower seed prices rise along with oil and freight costs
The global sunflower oil market remains sluggish, while in Ukraine sunflower seed prices are increasing alongside rising oil prices and freight costs, pushing crushers to shift toward rapeseed and soybeans. This was stated by Sunstone Brokers Managing Partner Serhii Repetskyi in a comment to Latifundist.com.
In Ukraine, sunflower seed prices continue to rise amid increasing sunflower oil prices and freight rates. However, sunflower oil prices at $1,355–1,365/tonne FOB are not attracting buyers, further encouraging processors to switch to rapeseed and soybeans.
At the same time, the global sunflower oil market remains weak. Activity this week was below average, with only limited deals concluded — 9–12 thousand tonnes in UAE ports and around 12 thousand tonnes at a tender in Turkey.
Europe and India continue to show weak demand. In Europe, despite high paper market quotations, buyers are unwilling to pay the asking prices. Offers at $1,450/tonne CIF Spain and $1,440/tonne CIF Italy remained unsold.
In Russia, ruble strengthening from 85 to 75 per USD worsened processing margins and increased export duties in dollar terms. At the same time, record oil production — over 600 thousand tonnes monthly in February and March — has built up large inventories, forcing sales at almost any price.
Ports in Turkey and Egypt are overloaded with oil due to weak demand for refined products and high container freight rates. In Egypt, payment issues persist, with some vessels incurring demurrage.
The Indian market remains nearly inactive due to cheaper Argentine oil and seasonal factors. Peak mustard oil consumption is currently underway, while overall demand declines in summer. In addition, gas shortages have led some food service operators to reduce oil usage.
Soybean oil prices in India have already declined by about $100/tonne from recent peaks. Market participants expect a short-term rebound of around $50/tonne, followed by potential further downside across the entire vegetable oil complex.
Black Sea shipment volumes remain low in April, which could lead to supply shortages in June. Against this backdrop, the market is considering May purchases with the formation of long positions through August.
Further development of the grain and oilseed markets of Ukraine and the Black Sea region will be in the spotlight of the BLACK SEA GRAIN. KYIV conference, taking place on April 22–23 in Kyiv. The event will focus on strategic directions for the agricultural sector through 2030, including investments, energy independence, processing, and exports of high-value products.
Join strategic discussions and networking with industry leaders to gain актуальна insights, discover new business opportunities, and build partnerships with key market players.
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