Sunflower prices in Ukraine resumed growth due to high demand

Sunflower prices in Ukraine, after a slight decrease last week, resumed growth on Monday, although sunflower oil prices overall remained almost unchanged.

 

During the week, prices for sunflower oil delivered to India fell by another $10/t to $1,390-1,400/t CIF Mumbai, which reduced prices for Russian sunflower oil by $10/t to $1,285-1,290/t FOB and demand prices for Ukrainian sunflower oil delivered to Black Sea ports by $5-10/t to $1,315-1,320/t.

 

Amid increased imports, vegetable oil stocks in India rose to a 15-month high of 2.1 million tonnes (compared to 1.35 million tonnes last year), which is holding back importer activity.

 

According to processors, the sunflower processing margin in Ukraine is already minus $20-25/t, so factories are stopping or switching to soybean processing. However, low sunflower stocks will keep demand for it high until rapeseed processing begins.

 

During the week, the demand prices for sunflower (with 50% oil content) in Ukraine increased by 500 UAH/t to 31,500-33,000 UAH/t or $630-660/t excluding VAT.

 

As of May 18, 3.727 million hectares, or 75% of the planned area, have been sown with sunflower in Ukraine, which is behind last year's pace, but farmers are accelerating sowing in anticipation of heavy rainfall across the country this week.

 

Oilseed markets are being supported by high oil prices, but analysts are hopeful that Iran and the US will reach a deal that will partially unblock oil exports from the Persian Gulf and lead to lower prices in the near future.