Trump’s sanctions are shaking up the edible oil market: what does this mean for Ukrainian sunseed?

New US trade restrictions have led to a change in the balance of the vegetable oils market, causing a potential rise in Ukrainian sunseed prices to become influenced by seasonal factors. The anticipated growth trend has been turned around due to the possibility of tariffs on European goods, leading to a sharp decrease in the price of soybean oil and affecting the sunflower oil market. This situation is causing instability in the sunseed market, with the potential for sunflower oil to lose an additional $10 per ton in the coming days. However, Ukrainian sunseed may benefit from the trade war as Europe may look for alternative sources of oil, potentially increasing demand for sunflower oil.

The expected rise in Ukrainian sunseed prices was influenced by new US trade restrictions. Donald Trump, the president of the United States, announced his intention to introduce additional duties on goods from Europe, Mexico, Canada and China. The decision caused an immediate reaction on the stock exchanges and changed the balance on the market of vegetable oils, in particular soybean and sunflower. This is reported by analysts of the PUSK agricultural cooperative, created within the borders of the VAR. “It would seem that everything was going well: seasonal factors supported the growth trend. However, the news about possible tariffs on European goods turned the situation around. The price of soybean oil has fallen sharply over the past few days, and this affects the sunflower oil market as well. We have already lost approximately $5-10 dollars per ton of soybeans. There were expectations that the market will reach the level of UAH 29,000-29,500 / ton. Now this probability ...