Global Sunflower Oil Prices Decrease, but the Market in Ukraine Remains Stable

Over the past week, global sunflower oil prices have dropped by $50 per ton, which has also affected the domestic market in Ukraine. Domestic processing enterprises have reduced their purchase prices for sunflower by only $10, which is less than the external decrease in oil prices.

This is reported by AgroReview

Processor Margins and Market Trends

“This may indicate a narrowing of processor margins and a desire not to miss the opportunity for advantageous purchases due to expectations of further price increases for raw materials. The current price drop could be a signal of future increases,” brokers note.

Additionally, over the week, prices for sunflower meal have risen by $10, positively impacting the processing economy and creating a basis for a possible increase in sunflower seed prices next week.

According to the spot index, the price of sunflower with delivery within 30 days has decreased by $9 and currently stands at $688 per ton, including VAT.

Harvest Status and Supply Outlook

As of November 6, approximately 90% of the sunflower area has already been harvested in Ukraine. The total harvest volume currently amounts to 8.7 million tons. Meanwhile, the yield remains consistently low at 1.89 tons per hectare. Given the harvesting pace and crop structure, the total sunflower production this year is unlikely to exceed 10 million tons.

“Low yields and reduced oil content in the seeds will limit the supply of Ukrainian sunflower oil in foreign markets. At the same time, the price gap between sunflower and alternative vegetable oils tends to widen throughout the season,” Spike Brokers add.