Sunseed prices in Ukraine are rising, but farmers expect a level of 28,000 UAH to stimulate sales

In Ukraine, the sunflower market is facing a battle between farmers seeking higher prices and processors struggling with low demand and slim margins. Recent changes have seen a rise in export prices for sunflower oil and meal, which has led to increased purchase prices for sunseed. However, factors such as reduced palm oil exports, falling soybean meal prices, and potential suspension of production by some factories could impact market dynamics. With approximately 4 million tons of sunseed available for processing and potential increases in sunflower sowing areas, the future of sunflower oil prices remains uncertain.

In the sunflower market in Ukraine, there is an ongoing confrontation between farmers, who expect maximum prices, and processors, who suffer from low demand for oil and low processing margins, unstable work, and fluctuations in prices for raw materials and finished products. Last week, in the Black Sea ports of Ukraine, export prices for sunflower oil increased by $10-20/t to $1,080-1,100/t, and for sunflower meal – by $10-12/t to $220-225/t, which allowed to increase the purchase prices for sunflower. Meal prices were supported by the increase in feed grain prices at ports to $220/t, but they are limited by increased competition from soybean meal, the prices of which continue to fall on the world market. Sunflower oil prices were supported by a rise in palm oil futures on the Bursa Malaysia exchange, which rose 4% in two weeks to 4,542 ringgit/t or $1,022/t on reduced inventories. However, further gains will be limited by a reduction in palm oil exports in February. During ...