Demand prices for sunflower in Ukraine by the end of November reached their maximum since the beginning of September.
According to APK-Inform, this was facilitated by a number of factors. First, high demand from processing enterprises. Second, rising prices and rates of shipment in the export market of sunflower oil during the specified months. Third, restrictions of raw materials sales by farmers, although market participants reported a gradual increase in supply.
Maximum demand prices for sunflower were traditionally in the southern part of the Ukraine. CPT delivery 13500 – 14000 UAH/t or 339 – 352 EUR/t. However, for large volumes and high oil content processors were ready to pay significantly extra.
Minimum demand prices were expectedly in the eastern part of the country and in the north. It was possible to purchase the oilseeds at level 12,500 UAH/t or 314 EUR/t CPT, and even lower.
At the same time, over the past week, the growth in sunflower prices has slowed down. It is the result of the sunflower oil export market reduction. In addition, market participants reported an increase in the supply of oilseeds from farmers. Such activity is traditional for December as farmers have to replenish working capital before the New Year holidays.
Market participants expect the lifting of the ban on the import of Ukrainian sunflower in Bulgaria.
Ban lifting can be expected already in December 2023. It may increase demand for raw materials in the domestic market from exporters and again accelerate price growth. However, the Bulgarian government has not yet given a clear answer. It only adds uncertainty to the market to price forecasts. Most likely, in December we will not see a significant increase in Ukrainian oilseed exports.