Ukrainian factories have halted sunflower seed purchases: what caused this
Processing plants in Ukraine have almost completely halted sunflower seed purchases due to market changes and export issues. Among the main reasons cited are the blocking of maritime shipments and the shift of plants toward rapeseed processing.
As a result, sunflower producers are facing a decline in demand for their products. Companies are forced to adapt their operations to new conditions related to logistical constraints and changes in the processing structure.
The decline in rapeseed prices—due to the inability to export—to the range of 20,000–21,000 UAH/metric ton increases the profitability of rapeseed processing. As a result, processing plants are actively working with this crop. Only small oil extraction plants (OEPs), which lack the technical capacity to reconfigure their operations, continue to process sunflower seeds for the domestic market.
Situation at Plants and Prices
All oil extraction plants in southern Ukraine have completely halted sunflower and rapeseed processing due to shelling, damage, and the suspension of maritime exports of meal and oil. Only some domestic enterprises are currently processing rapeseed. This processing may continue through November–December due to the significant supply of raw materials.
Purchase prices for sunflower seeds in Ukraine have fallen by 4,000–5,000 UAH/metric ton to 27,000–29,000 UAH/metric ton (50% oil content) delivered to the plant. In addition, processors have begun announcing prices for the new sunflower crop at 20,000–22,000 UAH/t delivered, which is putting further pressure on the market.
Export Indicators
Export demand prices for sunflower oil remain at $1,320–1,335/metric ton, delivered to Danube ports. Demand prices for sunflower oil in India and for Russian sunflower oil with delivery in August have risen to $1,370/metric ton FOB.
According to analysts, favorable weather conditions for sunflower crops in Ukraine are improving harvest potential. At the same time, the market expects prices for the new harvest to decline under pressure from increased supply and falling oil prices.
This was reported by the Ukrainian Electronic Grain Exchange.
Sunflower prices are rising in Ukraine, while sunflower oil is becoming cheaper.
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