Halt in the Rise
Last week, Ukraine witnessed a halt in the rise of sunflower prices. The purchase prices for sunflower settled between €366-390 per tonne , VAT included, with delivery to factories. This change occurred as processors amassed considerable stocks of raw materials and sunflower oil demand prices fell by $5 per ton to $775-785, delivered to the port.
The drop in prices is mainly due to increased competition, particularly from Russian sellers. To boost sales, they significantly reduced their prices, a tactic clearly seen in the most recent tender in Egypt. Meanwhile, on the global stage, sunflower oil prices managed to hold steady at $855 per ton over the week. Despite this consistency, there was a notable monthly increase of 5.5%, mirroring the rising trends seen in soybean and palm oil prices.
How International Trends and Argentine Harvests Influence Prices
The market saw a boost in sunflower meal demand, with its prices climbing by $5-10 to reach $185-190 per ton over the week. However, sunflower export demand prices stayed the same at $430-455 per ton DAP Bulgaria, $405-410 per ton DAP Türkiye, and $415-420 per ton CIF Romania (port). This consistency came amidst an uptick in the interbank dollar rate to 39.2-39.3 hryvnias/$, sparking increased competition among exporters and processors.
In Argentina, progress has been made in sunflower harvesting, with 75% of the area threshed. The average yield rose to 2.02 tons per hectare from 2 tons. This is indicating a likely surge in Argentine sunflower meal and oil offerings on the global market. This development could introduce new dynamics into the sunflower market, affecting prices and availability worldwide.