Sunflower prices are falling in Ukraine due to plant shutdowns

Ukraine is seeing a decline in sunflower purchase prices due to falling demand for raw materials. This trend is driven by the fact that domestic processing plants are shutting down their facilities en masse for scheduled maintenance and to prepare equipment for the start of the new rapeseed processing season. 

The reduction in the number of active buyers in the domestic market has led to a drop in prices, which, according to analysts’ forecasts, may continue throughout June. In the past week alone, the purchase price of sunflower seeds with a high oil content (50%) fell by 200–300 UAH/t. Currently, market prices have settled in the range of 31,300–33,000 UAH/t, which, excluding VAT, is equivalent to $630–660 per ton. Since processors have already built up the necessary working stocks of raw materials through small batches, they are refusing to pay suppliers additional cash bonuses for large volumes.

At the same time, current weather conditions in Ukraine and European Union countries, characterized by cool weather and regular rains, are having an extremely positive impact on the overall condition of crops. Such weather contributes to better development of the future sunflower crop and increases the yield potential of rapeseed. As a result, a significant increase in the global supply of new-crop vegetable oils is expected on the world market, which will intensify competition for end buyers. Further price growth in the coming months is also being held back by substantial shipments of sunflower oil from Argentina.

On the international market, sunflower oil prices are as follows:

• The cost of products delivered to India remains stable at $1,400–1,410 per ton (CIF Mumbai).

• The export price of Ukrainian sunflower oil rose by $5–10 and settled at $1,330–1,335 per ton DAP at Black Sea seaports.

• The export price of Russian sunflower oil increased by $10, reaching $1,300 per ton FOB.