Ukrainian sunseed is cheaper by $20-30/t compared to the world market

Ukraine has harvested 5.5 million tons of sunseed compared to 8 million tons last year. Factories are currently supplied with raw materials until the end of October – the first decade of November.

This is reported by analysts at Spike Brokers.

Agricultural producers sold about 1.5 million tons of sunflower sseeds, which is not enough given the possible change in sales plans by producers after the approval of the mechanism for exempting them from customs duties on the export of rapeseed and soybeans. Producers are focused on fulfilling previously concluded contracts, while contracting new volumes has slowed down due to a decrease in purchase prices from processors, who are thus trying to improve the marginality of processing.

World prices for sunflower oil have increased by $40 over the past week, while in Ukraine processors have reduced purchase prices by $6-10 including VAT. This gap creates an imbalance between the domestic and foreign markets, which makes Ukrainian sunflower look undervalued by $20-30.

The spot price index for sunseed with delivery within 30 days decreased by $6 incl. VAT to $680 incl. VAT. This is the price for the basic quality 8/3/48, adjusted for the cost of transportation from the plant to the SRT Odesa base.

Tags: Ukraine, prices, sunseed