Sunflower purchase prices remain under pressure from increased supply

The volume of sunflower offers in Ukraine and the demand for it from processors remain insignificant, therefore the purchase prices are at a low level.

As of October 27, 11.07 million tons of sunflowers were harvested in Ukraine from 4.69 million hectares or 88% of the area with a yield of 2.36 tons/ha. Thanks to favorable weather, sunflower harvest forecasts remain at the level of 13-14 million tons, which is in line with USDA estimates. Despite active harvesting, the number of offers on the market has not increased, as farmers expect an increase in sunflower prices following soybean prices, which have increased by 1-1.5 thousand UAH/t in recent weeks due to increased export demand.

In the current season, export demand for sunflower has almost no effect on prices, as deliveries to neighboring EU countries are prohibited, and sunflower prices are very low in Romania and Bulgaria.

The Bulgarian market is saturated with self-produced sunflower, so prices remain at last week's level of $390-405/t DAP Bulgaria. With transportation and duty costs in the range of $90-100/t, producers will receive UAH 11,800-12,000/t for sunflower, which corresponds to the price level of processors.

The export demand prices for sunflower are $310-315/t with delivery to the Danube ports and $305-310/t - at DAP Odesa.

Processors are offering UAH 12,000-12,500/t with delivery to the factory, and do not yet plan to raise prices, as meal prices remain low due to weak demand from the EU and slow exports through Black Sea ports.

The drop in oil prices has turned downwards quotes for vegetable oils, but the demand prices for sunflower oil with delivery to buyers remain at the level of $850/t. Buyers offer $780-790/t for Ukrainian sunflower oil with delivery to Romania or Bulgaria.