Ukraine continues to increase exports of sunflower oil

In December 2023, Ukraine’s sunflower oil exports increased by 25% compared to November to 672 thsd tonnes, the highest monthly figure since January 2022 and the second highest December exports of this oil in the history of Ukraine’s independence. Romania purchased about 25% of the exported oil, and Turkey – 12%.

Overall, in September-December 2023, Ukraine exported 2 mln tonnes of sunflower oil, up 4% compared to last year.

It is worth noting that in December, the prices for Ukrainian sunflower oil fell amid the falling prices for palm and soybean oil. However, the decline in prices and the resumption of exports through the Black Sea ports are boosting demand for Ukrainian oil.

World demand prices for sunflower oil for delivery to customers during the week fell by another 3% to 820 $/t (-10% for the month). In Ukraine, the purchase price of soybean oil for the month fell by 60-70 $/t from 800-820 $/t to 720-750 $/t for deliveries to the ports of the Black sea and Danube and to 780-820 $/t for deliveries to Bulgaria.

the March futures for soybean oil on the Chicago stock exchange for the month fell by 5.5% to 1065 $/t amid improving weather conditions in South America and forecasts of soybean crop.

March futures for palm oil on the Bursa exchange in Malaysia for the month fell by 7.5% to 3621 ringgit/t or 782 $/t under pressure from slowing exports.

Increased demand for cheap Ukrainian oil will support prices in the near future, but starting in March, the market will see an increase in the supply of soybean oil from Argentina and Brazil and palm oil, so the struggle for buyers and pressure on prices will intensify.

Tags: Ukraine, sunflower oil, export