Sunflower oil rises in price in Ukraine and globally due to limited supply

In May, 620 thsd tons of Ukrainian sunflower oil were contracted for export, which is proceeding at a very fast pace. However, in July-August, the pace of exports may slow down. This was discussed during the analytical briefing of the PUSK cooperative, created within the framework of the VAR.

“Sunflower oil prices are rising due to limited supply on the global market. The main producers of sunflower oil in the world are Russia and Ukraine. Russia exports most of its products to China, while other buying countries turn to Ukraine, where the supply is limited. This leads to higher prices for sunflower oil. The purchase price for sunseed in Ukraine has exceeded 18 thousand hryvnias per ton, and factories are willing to buy it even at high prices due to low stock levels. The resumption of port operations in March-February led to a significant decrease in sunseed stocks, which also affects the price increase,” the analytical department of the PUSK said.

Processing plants operate with minimal profit in anticipation of the new oilseed season.

“The current prices often bring minimal profit or even losses to the plants, but their main goal is to maintain operations until the rapeseed season starts, when a new crop will be processed. Sunseed prices are expected to rise further this week. The crushers will continue to buy sunseed at the current prices, which range from UAH 18,100-18,200. By the end of the week and the beginning of the next week, purchase prices are expected to reach 19 thousand hryvnias per ton,” the PUSK forecasts.

Tags: Ukraine, sunflower oil, export, prices, sunseed