Sunflower prices in Ukraine plummet due to processing halt

Processing plants have practically stopped purchasing sunflower seeds in Ukraine due to the blockade of sunflower exports and the switch to processing rapeseed, which has caused purchase prices to plummet.

 

The decline in rapeseed prices due to the impossibility of export to the level of 20,000-21,000 UAH/t increases the marginality of its processing, so factories are actively switching to rapeseed processing, and only small SEZs, which do not have such technical capabilities, continue to process sunflower for the domestic market.

 

All oil extraction plants in southern Ukraine have completely stopped processing both sunflower and rapeseed due to shelling and damage, as well as the cessation of sea exports of meal and oil, and only some plants within the country are processing rapeseed, which may drag on until November - December due to the significant supply of rapeseed.

 

Purchase prices for sunflower in Ukraine decreased by 4000-5000 UAH/t to 27000-29000 UAH/t (oil content 50%) with delivery to the factory. In addition, processors began to declare prices for the new sunflower crop at the level of 20000-22000 UAH/t with delivery to the factory, which further increased pressure on prices.

 

Export demand prices for sunflower oil remain at a high level of $1,320-1,335/t delivered to Danube ports, and demand prices for sunflower oil in India and Russian sunflower oil delivered in August have risen to $1,370/t FOB, but markets expect a sharp decline in prices for the new crop under pressure from increased supply and falling oil prices.

 

Favorable weather for sunflower sowing in Ukraine and the Russian Federation improves harvest potential, but another heat wave in the EU worsens harvest prospects, which will support prices in the second half of the 2026/27 MY.