Sunseed prices in Ukraine are falling despite high exports of sunflower oil

In the first half of 2023/24 MY, Ukraine increased the exports of sunflower oil by 18.5%, from 2.7 mln tonnes to 3.2 mln tonnes, compared to the same period of the previous season. In particular, in February, the country exported 603 thsd tonnes of the oil, down 1% compared to January 2024, but up 50% compared to February 2023.

According to Share UA Potential, in comparison with January, the oil supply from Ukraine to the EU decreased by 10% to 364.1 thsd tonnes due to the accumulation of significant oil stocks in Europe. At the same time, exports to Turkey increased by 15% to 81.6 thsd tonnes, and to India – 54 times from 0.7 to 38.1 thsd tonnes.

While in 2022 Ukraine exported 4.3 mln tons of sunflower oil worth $5.5 bln, in 2023 it exported 5.7 mln tons worth $5 bln.

According to market analysts, Bunge has significantly increased its oil exports this season, but Kernel remains the largest producer and exporter of sunflower oil in Ukraine.

High export rates are driven by low prices for Ukrainian oil, which is cheaper than soybean or palm oil. And the increase in supply of soybean oil on the global market in the coming months will increase pressure on quotations.

The Purchase price of sunseed in Ukraine this week fell by 400-600 UAH/t to 13800-14500 UAH/t (including VAT) with delivery to the plant amid a slight decline in oil prices and a more significant drop in prices for sunflower meal.

Demand prices for sunflower oil with delivery to buyers for the week decreased by another $5/t to 810 $/t, in particular in the ports of Ukraine – to 730-735 $/t.

Demand prices for sunflower meal in ports fell by 5-10 USD/t to 155-160 USD/t, and demand on the western border is almost absent due to the blocking of crossings on the border with Poland.

A significant increase in the supply of soybean meal from Argentina and falling prices for feed corn and wheat in the near future will continue to put pressure on the prices of sunflower meal and, accordingly, sunseed.

Tags: prices, sunseed