Sunflower prices in Ukraine have reached 21,000 UAH per ton with delivery to the plant

The sharp rise in export prices for sunflower oil and meal has led to an increase in purchase prices for sunflower in Ukraine by 25% over the month to a three-year record of 21,000 UAH per ton with delivery to the plant. Additionally, the rise in prices was facilitated by the fall of the hryvnia exchange rate to a record 40.5 UAH per dollar.

 

During the week, purchase prices for sunflower increased by another 500-1000 UAH/t to 20,300-21,000 UAH/t (including VAT) or 440-460 $/t amid limited supply from farmers at the end of the season. This week, large volume purchases were recorded in the market at prices around 20,300-20,600 UAH/t on FCA-farm and EXW-elevator terms.

 

Export prices for sunflower oil with delivery to Black Sea ports jumped by 100 $/t over the month to 890-900 $/t due to a significant increase in exports in May to 720 thousand tons compared to 626 thousand tons in April, driven by increased demand from India. Last week, demand prices reached 920 $/t in Ukrainian ports, exceeding the demand prices for delivery to Bulgaria, which remain at 880-890 $/t.

 

Demand prices for sunflower meal with delivery to Black Sea ports rose to 225-230 $/t (+15-18% per month) but have now slightly decreased to 220-225 $/t, against the backdrop of falling soybean meal prices on exchanges.

 

According to Trading Economics, the average price of sunflower oil with delivery to buyers decreased by 2% to 912 $/t during the week, adding 7.2% overall for the month.

 

Export demand prices for sunflower with delivery to DAP Bulgaria remain at 450-460 $/t, confirming that the price increase in Ukraine is due to the minimal supply of raw materials at the end of the season.

 

As of June 5, 5.19 million hectares of sunflower have been sown in Ukraine, or 98% of the plan, which is almost equivalent to the sowing level on June 9, 2023 (5.3 million hectares). Weather conditions generally favor the development of crops, although a lack of rainfall persists in central and eastern Ukraine.

Forecasts for a sharp increase in sunflower and soybean sowing areas instead of corn sowing have not yet materialized, so the sunflower yield forecast remains at last year's level.

 

August futures for palm oil on the Bursa exchange in Malaysia remain stable at 3960 ringgit/t or 844 $/t, as exporters try to maximize shipments to India amid rising sunflower oil prices and falling soybean oil prices.

 

July soybean oil futures on the Chicago exchange fell by 5.3% at the beginning of the week but recovered 2.7% yesterday and are trading at the same level as a month ago, 978 $/t.

 

Argentina is completing the soybean harvest, so the supply of soybean oil and meal will continue to grow, which has already been felt by Ukrainian soybean meal sellers amid the lack of demand from Europe.