Sunflower Oil Prices in Ukraine Rise Amid Limited Supply

In Ukraine, there is a continued increase in sunflower prices due to a reduced harvest forecast and farmers’ reluctance to actively sell their stocks. In response to the raw material shortage, processing enterprises are selling sunflower oil at higher prices, supported by strong market demand.

This is reported by AgroReview

Price Dynamics of Ukrainian Sunflower Oil

• Over the past week, the demand prices for sunflower oil in Ukraine have risen by $20–30/ton, reaching $1250–1265/ton with delivery to ports in November. At the same time, factories are offering oil at $1250/ton on FCA plant terms.
• The cost of Ukrainian sunflower oil for delivery to the EU has increased to $1340–1360/ton DAP Italy, Greece. For rapeseed and soybean oil, prices remain in the range of $1220–1260/ton DAP Poland, Germany.
• Shipments to India have also increased by $20–30/ton and are now estimated at $1340–1350/ton CIF Mumbai.

Impact of Global Markets and Trends

Global markets are gradually becoming saturated with supply, and palm oil prices are rapidly declining due to reduced demand. This may also diminish speculative interest in the more expensive sunflower oil.

November palm oil quotations have decreased by 4.4% over the past week to 4317 ringgit/ton ($1022/ton). The main reason is the increase in production in Malaysia and a slowdown in export rates. For the first 25 days of October, exports from Malaysia fell by 0.5–1% compared to the same period in September, although in the first ten days of October, exports exceeded September figures by 15–17%.

Chicago Board of Trade soybean oil prices for December futures have decreased by 1% to $1107/ton, which is 0.7% lower than a week ago. This occurred despite a 4.7% jump in soybean quotations amid expectations of a new trade agreement with China.

According to the Indonesian Palm Oil Producers Association GAPKI, the country expects palm oil production to rise to 56 million tons, exceeding both previous estimates and the USDA forecast (47.5 million tons). The growth is supported by favorable weather conditions and high prices.

Brent crude oil quotations have also decreased by 1.5% to $64.5/barrel after profit-taking, following a sharp jump of 7.6% over the week, as well as amid expectations of the results of negotiations between U.S. President Trump and Xi Jinping.

This week, markets will remain focused on the outcomes of U.S.-China negotiations and the potential signing of a trade agreement, which would contribute to rising quotations. However, if the agreement is not reached, the speculative price increase will cease.