The level of sunflower offers in Ukraine remains low, and there is minimal demand from processors. Graintrade reports that this situation has resulted in low purchase prices.
By 27 October, 11.07 million tonnes of sunflowers had been harvested in Ukraine from 4.69 million hectares, or 88% of the area, with a yield of 2.36 tonnes/ha. Thanks to favourable weather conditions, the forecast sunflower crop remains at 13-14 million tonnes, in line with USDA estimates. Despite active harvesting, the number of offers on the market has not increased as farmers expect sunflower prices to rise in line with soybean prices, which have risen by UAH 1-1.5 thousand per tonne in recent weeks due to increased export demand.
In the current season, export demand for sunflowers has almost no effect on prices, as deliveries to neighbouring EU countries are prohibited and sunflower prices in Romania and Bulgaria are very low.
The Bulgarian market is saturated with self-produced sunflowers, so prices remain at last week’s level of $390-405/t DAP Bulgaria. With transport and duty costs in the range of $90-100/t, producers will receive UAH 11,800-12,000/t ($325-330/t) for sunflowers, which corresponds to the price level of processors.
The export demand prices for sunflowers are $310-315/t with delivery to the Danube ports and $305-310/t – at DAP Odesa.
Processors are offering UAH 12,000-12,500/t ($330-345/t) with delivery to the factory, and do not yet plan to raise prices, as meal prices remain low due to weak demand from the EU and slow exports through Black Sea ports.
The drop in oil prices has turned downwards quotes for vegetable oils, but the demand prices for sunflower oil with delivery to buyers remain at the level of $850/t. Buyers offer $780-790/t for Ukrainian sunflower oil with delivery to Romania or Bulgaria.