Ukrainian processors raise the purchase prices for sunflower

After the increase in export prices for sunflower oil and meal, domestic processors stepped up purchases of sunflower, which led to an increase in purchase prices, especially given the restraint of sales by producers.

During the week, sunflower purchase prices increased by UAH 300-500/t to UAH 16,700-17,000/t (including VAT) with delivery to the plant, which is the highest level since March 2023. Processors pay a premium for large batches in order to accumulate volumes of raw materials. and also reduce the processing margin to a minimum level. Therefore, in the near future, sunflower prices will continue to rise, even in the event of a possible decrease in oil export prices.

Export prices for sunflower oil delivered to Black Sea ports currently remain at $780-790/t due to reduced demand from China and India and increased competition with Russian oil.

Demand prices for sunflower meal with delivery to Black Sea ports rose to $195-205/t, which further supports sunflower prices.

During the week, the average price of sunflower oil delivered to buyers fell 0.7% to $851/t, while soybean and palm oil prices continued to rise, according to Trading Economics.

Sunflower demand export prices remain at $325-340/t with delivery to Black Sea and Danube ports and $430-440/t at DAP Bulgaria.

Sunflower sowing rates are higher than last year, and weather conditions favor the development of crops, so the sowing area may increase due to a reduction in the area under corn, which will increase the pressure on the quotation of the new crop.

Early ripening canola will allow processors to begin processing earlier, which will reduce demand for old-crop sunflower in June and July.