In the new season sunseed production in Ukraine will be lower than expected

In the current season, sunseed prices in Ukraine were very volatile and depended on a number of factors, primarily on the volume of exports of meal and oil through the Black Sea ports. At the end of the 2022/23 season, the crushing volumes and demand for sunseed were expected to decrease, especially given the new rapeseed crop coming soon to the market. However, the processing rates remain high, and the demand for sunseed is growing, which leads to higher purchase prices.

Prices for sunflower oil rose from 750 to 900 $/t delivered to buyers, after which the processors within a month increased the purchase price of sunflower from 14000-14500 to 15500-16000 UAH/t delivered to the plant, although the volume of proposals is quite low, as producers have already sold out.

In the new season, sunseed production will be lower than expected, as due to low and unstable prices, producers increased the planting areas of soybeans, not sunflower, which was rising throughout the season.

Ukroliyaprom experts believe that in 2023 Ukraine will increase sunflower production by 6.5% to 11.8 mln tons compared to 2022.

Experts of the International Grains Council (IGC) raised the forecast of the global sunseed production in 2023/24 MY by 1.6 mln tonnes to 56.9 mln tonnes, up 5% compared to last year, and the record 56.2 mln tonnes in 2021/22 MY. The reason for the adjustment was the improved prospects for the sunflower harvest in the EU and Ukraine due to favorable precipitation in June and July. According to IGC estimates, amid favorable weather, the EU will increase sunflower production

Tags: Ukraine, sunflower oil, prices, sunseed