Sunflower prices in Ukraine are witnessing a decline due to the decrease in global prices for meal and oil. The pressure stems from significant raw material stocks at processing plants and a lack of export demand. The acceleration of soybean harvests in Brazil and favorable weather conditions in Argentina are also contributing factors, causing downward pressure on soybean oil prices and subsequently affecting neighboring palm and sunflower oil markets.
In the US, soybean processing reached record levels in January, resulting in increased soybean oil stocks. Consequently, March soybean oil futures on the Chicago Stock Exchange fell by 3.5% to $1,004(€932,25) per ton during the week.
Despite high export rates for sunflower oil in February, demand prices in Ukraine have dropped to
- $735-740(€682-687) per ton for delivery to ports,
- $780(€724) per ton for delivery to Bulgaria.
In January, sunflower processing in Ukraine decreased by 10% compared to December but remained 36% higher than in January 2023. Overall, sunflower processing for the 2023/24 season increased by 9% compared to the previous year, totaling 6.5 million tons.
Despite efforts to maintain profitability, processors in Ukraine have begun to lower purchase prices for sunflower due to falling oil prices and rising logistics costs towards western borders.
The Ministry of Economy of Ukraine has issued licenses for sunflower exports, but demand prices for delivery to Bulgaria have decreased. Sunflower meal prices at the port have also decreased and are expected to continue falling in the near future due to global market trends.
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