Sunflower prices in Ukraine continue to decline amid Russian aggressors' attacks on processing plants

Russian terrorists are intensifying attacks on industrial facilities, especially oilseed processing plants, trying to stop an entire industry in Ukraine that provides significant foreign exchange earnings in order to squeeze Ukrainian exporters on world markets.

While previously the enemy attacked factories mainly in southern Ukraine and in ports, over the past week oilseed processing plants in Poltava, Vinnytsia, Chernihiv, Chernivtsi and Khmelnytsky regions have come under attack, as a result of which the enterprises were stopped to assess the damage and determine the timing of restoration. At the same time, there were casualties among workers at some factories.

Such attacks reduce the number of factories that can process, so purchase prices for sunflower in Ukraine will continue to decline, although this week they were 15,000–16,000 UAH/t including VAT or $290–310/t excluding VAT with delivery to the factory at an oil content of 48%.

As of November 10, 10.711 million tons of sunflower have been threshed in Ukraine from 91.6% or 4.797 million hectares with an average yield of 2.23 tons/hectare, but due to prolonged October precipitation, some of the sunflower remains in the fields, so some of the harvest may be lost or harvested with poorer quality.

The fall in oil prices has led to a sharp decline in palm oil prices , so India and other importers continue to increase palm oil imports, reducing demand for sunflower oil, which also reduces export prices and increases pressure on prices in Ukraine.

Export demand prices for sunflower for delivery to Turkey remain at the level of 580-600 $/t, but the duty-free quota for the supply of 50 thousand tons from Ukraine has probably already been exhausted, so in the future deliveries will be made with an export duty of 10%. The cost of delivering sunflower by road to Turkey has increased to 160-180 $/t, so prices in Ukraine continue to fall. Export demand prices for sunflower for delivery to Bulgaria remain at the level of 480-485 €/t or 535-545 $/t, but the cost of delivery also continues to grow as exporters receive licenses for deliveries to this country.

Active exports currently remain the only opportunity to sell sunflower at more favorable prices, but the shortage of transport is limiting export sales, and domestic demand continues to decline and put pressure on prices.