Sunflower prices in Ukraine are falling, despite the high rate of sunflower oil exports

In the first half of the 2023/24 financial year, Ukraine increased sunflower oil exports by 18.5%, from 2.7 to 3.2 million tons, compared to the same period of the previous season. In particular, in February, 603,000 tons of oil were exported, which is 1% less than indicator of January 2024, but 50% higher than the export of February 2023.

According to Share UA Potential, compared to January, oil supplies from Ukraine to the EU decreased by 10% to 364.1 thousand tons due to the accumulation of significant oil reserves in Europe. At the same time, exports to Turkey grew by 15% to 81.6 thousand tons, and to India - by 54 times from 0.7 to 38.1 thousand tons.

If in 2022 Ukraine exported 4.3 million tons of sunflower oil worth $5.5 billion, then in 2023 - 5.7 million tons worth $5 billion.

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

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

The purchase prices of sunflower in Ukraine this week fell by UAH 400-600/t to UAH 13,800-14,500/t (including VAT) with delivery to the factory against the background of a slight decrease in oil prices and a more significant drop in sunflower meal prices.

Demand prices for sunflower oil with delivery to buyers in a 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 the ports fell by $5-10/t to $155-160/t, and demand on the western border is practically absent due to the blocking of crossings on the border with Poland.

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