ODESA: Increase in soybean oil prices and an increase in palm oil prices supported Ukrainian sunflower oil quotes. However, demand from buyers is getting lower because they fear the cancellation of supplies in the event of a Russian military invasion of Ukraine. Some buyers are already beginning to buy sunflower oil from competitors – Russia and Argentina.
Since the beginning of January, purchasing prices for sunflower seeds in Ukraine have risen to 19500-20500 UAH/mt (680-720 USD/mt). The price increase is happening against the backdrop of a sharp devaluation of the hryvnia by 5%. At the same time, after falling to 1340-1360 USD/mt FOB, sunflower oil prices returned to the level of 1370-1380 USD/mt FOB.
In an escalation of the conflict between Ukraine and Russia, prices for sunflower oil can rise sharply. It will lead to an increase in the price of other vegetable oils.
However, prices may soon drop as tensions between Ukraine and Russia ease. Also, demand from China, the world’s largest oil importer, will be low in February. They are hosting the Olympics after a week-long holiday on the occasion of New Year’s celebrations.