After a short-term increase in demand, sunflower prices in Ukraine fell again

Sunflower prices in Ukraine have dropped due to a strong hryvnia exchange rate and falling prices for oil, palm, and soybean oil. The country's sunflower processing volumes are at a record low, with a 16% decrease in January compared to December. This is due to difficulties in selling sunflower oil and farmers withholding sunflower sales. As a result, some factories have stopped processing sunflower and have switched to processing soybeans. The main reason for the low demand for Ukrainian sunflower oil is aggressive sales from Russia. However, demand and supply volumes remain low, and the average price of sunflower oil for delivery to buyers has risen by 1.6%.

As we predicted earlier, after renewing the seasonal maximum, sunflower prices in Ukraine have decreased again under the pressure of the strengthening hryvnia exchange rate and falling prices for oil, palm and soybean oil. Due to difficulties with the sale of sunflower oil this year, the rate of sunflower processing in Ukraine remains at a record low. Some plants are standing and accumulating raw materials, hoping that in the second half of the season oil prices will increase. According to the APK-Inform Agency, sunflower processing volumes are decreasing for the second month in a row, and in January they decreased by 16% compared to December to 800-840 thousand tons, which was the lowest figure for this month since 2011/12 MY. Another problem for processors is the restraint of sunflower sales by farmers, especially at the beginning of the season. Due to the shortage of raw materials, many factories in November-December stopped processing sunflower and stopped or switched to ...