High Demand for Ukrainian Sunflower Supports Prices Despite Lower Oil Costs
In Ukraine, sunflower prices remain consistently high, even amid a global decline in the cost of vegetable oils and an expected increase in supply. This situation is due to delays in harvesting and low yields in the current season.
This is reported by AgroReview
Harvesting Rates and Market Situation
As of September 18, Ukrainian farmers have harvested only 26.7% of the sunflower planting area, equivalent to 1.373 million hectares. A total of 2.415 million tons of this crop has been collected, with an average yield of 1.76 tons/ha. In comparison, last year at this date, 49% of the area had been processed, and the yield was 2.01 tons/ha.
Currently, demand prices for sunflower in Ukraine are maintained at the level of 26,500–27,500 UAH/ton (or 565–585 USD/ton excluding VAT) for a 50% oil content and delivery to the factory. However, several processing enterprises have already lowered their purchase prices due to a gradual increase in supply and the formation of queues at the facilities.
Price Dynamics for Oil and Meals
At the same time, over the past week, demand prices for sunflower oil in Ukraine have decreased by 10 USD/ton, reaching levels of 1170–1180 USD/ton with delivery to Black Sea ports for September–October. This occurred against the backdrop of a significant drop in prices for Russian oil to 1150–1160 USD/ton FOB. Forecasted demand prices for deliveries in November–December have also decreased — to levels of 1140–1160 USD/ton for Black Sea ports.
“The global market for oilseeds anticipates a sharp increase in the supply of vegetable oils and meals from Argentina following the temporary cancellation of export duties, and buyers are taking a wait-and-see approach. Therefore, one should not expect new active sales of Ukrainian products at high prices, which has already led to a decrease in demand prices for sunflower meal by 10–20 USD/ton to 205–210 USD/ton with delivery to the port.”
Considering these factors, market participants do not expect further price increases for Ukrainian sunflower products in the near future.