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Ukrainian prices for sunflower seeds and oil are rising, but exports are decreasing due to competition in the global market.
Oilseeds
Sunflower

Ukrainian prices for sunflower seeds and oil are rising, but exports are decreasing due to competition in the global market.

In Ukraine, the dry and warm weather is contributing to the sunflower harvest, but it is negatively affecting the yield. The level of harvested crop amounted to 16% of the total area.

Prices for sunflower oil and meal have increased, however, the increase in meal supply on the global market will lead to price stabilization. The sunflower market is recovering after a decline.

7 September 2024 7 September 2024

In Ukraine, dry and warm weather continues, accelerating the sunflower harvesting process. However, such climatic conditions have a negative impact on the crop potential. According to the latest data, 1.39 million tons of sunflower seeds have already been harvested from an area of 780.8 thousand hectares, which constitutes 16% of the total sown area.

Prices for sunflower oil delivered to ports have increased by $10/ton in the last week, reaching $920-930/ton. However, at the border between Ukraine and Poland, prices decreased to $910-915/ton. It is important to note that last month prices at the western borders were higher than at the ports. The decrease in demand for Ukrainian oil was due to an increase in offers of rapeseed oil in the EU, reducing the interest of biodiesel manufacturers in Ukrainian oil. As a result, sunflower oil exports from Ukraine in August decreased by 48% compared to July, reaching 227 thousand tons - the lowest level since June 2022.

Prices for sunflower meal have also increased by $5/ton to $190-195/ton due to the rise in prices for animal feed wheat and corn. However, the increase in offers of rapeseed and soybean meal in the global market will lead to a halt in price growth in the near future.

Sunflower prices continue to rise, increasing by 500-1000 hryvnias/ton to 20,000-20,800 hryvnias/ton delivered to the plant over the past week. This is due to the increasing number of plants processing sunflower and the reluctance of farmers to sell.

Soybean oil futures on the Chicago Mercantile Exchange in December showed a slight decrease by 2.4%, reaching $905/ton (+2.8% over the month). This allows the market to recover from the August drop to multi-year lows.

Currently, sunflower prices are above the level that guarantees profit to processors, so they will be forced to reduce purchase prices if prices for meal and oil on the global market do not significantly increase.

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