Sunflower prices in Ukraine collapsed after an oil extraction plant in the port of Pivdennyi was hit

As a result of Saturday's shelling of the port of Pivdennyi, the Allseeds vegetable oil transshipment terminal was damaged, large-scale fires broke out on the territory of the enterprise, one employee died and two were injured, infrastructure was damaged, and thousands of tons of sunflower oil were lost.

Experts warned that the terrorist state of the Russian Federation would attack both port infrastructure and oil extraction plants in order to weaken Ukraine's economic potential and increase prices for Russian grain and oil against the backdrop of restrictions on exports from Ukraine.

Processors in Ukraine yesterday sharply reduced purchase prices for sunflower seeds due to the suspension of oil and meal exports from Black Sea ports, as well as increased risks of attacks on other oil extraction plants.

Purchase prices for sunflower seeds fell yesterday by 1,000-1,300 UAH/t to 27,000-27,500 UAH/t or $560-570/t excluding VAT (for 50% oil content) with delivery to the factory.

Processors have fairly large stocks of sunflower, but the halt in sea exports will force them to reorient exports through the western border, as was the case in 2022, which will greatly increase logistics costs.

In India, asking prices for January deliveries of sunflower oil remain at $1,300-1,320/t, as they are constrained by increased supply of soybean and rapeseed oil, which are falling in price.