Purchase prices for sunflowers in Ukraine slightly increased after the previous collapse

According to APC-Inform, demand prices for sunflower in Ukraine began to rise gradually at the end of the previous week. However, low trading activity may lead to another drop in prices.

We will remind that since the beginning of the harvesting campaign, processors lowered the purchase prices for sunflower by 5,000 UAH/t to 9,500-11,500 UAH/t SRT under the pressure of a significant supply of the new harvest and a significant decrease in export prices for sunflower oil.

The dry weather in September made it possible to accelerate the pace of sunflower harvesting and increase the volume of offers on the domestic market. Therefore, large processors managed to purchase raw material stocks for the next 1-1.5 months, after which they lowered prices to the lowest level since July last year. In response, farmers stopped selling sunflowers because the proposed price level does not cover the cost of growing them.

The decrease in trade activity on the domestic market was also caused by the expected recovery of sunflower exports to Bulgaria and good prices for oilseeds from exporters, who last week offered UAH 11,800-12,200 for sunflowers/t SRT-port.

Against the background of the reduction of offers on the domestic market and the activation of export supplies, sunflower prices have risen by UAH 100-300/ton in recent days. But their growth is limited by information about the possible introduction of quotas for the import of Ukrainian sunflowers to Bulgaria.

In addition, the sunflower market is being pressured by improved crop yields, complex logistics for both seeds and processed sunflower products, overcrowding of western crossings and the accumulation of a large number of cars on those routes, and low demand at ports due to systematic shelling.

As of September 22, Ukraine harvested 2.375 million tons of sunflower from 1.089 million hectares with a yield of 2.18 tons/ha. Dry and warm weather in the next few weeks will speed up harvesting, which will increase the volume of offers on the market.