Sunflower prices in Ukraine have risen amid limited supply and a strengthening dollar, but are being constrained by falling oil prices in India

Over the past week, sunflower demand prices in Ukraine increased slightly against the backdrop of rising oil prices and restrained sales by producers who expect further price increases.

Prices for sunflower oil delivered to India fell by $10/t to $1,420-1,425/t CIF Mumbai during the week due to a general decrease in demand for imported oils caused by the start of domestic rapeseed processing and an increase in offers of cheap palm oil and cheap sunflower oil from Argentina, the prices for which fell by $10-20/t to $1,260-1,280/t FOB during the week.

But demand prices for Ukrainian sunflower oil increased by $5-10/t during the week to $1,310-1,315/t with delivery to Black Sea ports due to increased demand from Turkey and other importers.

Purchase prices for sunflower in Ukraine increased by another 200-300 UAH/t to 31,800-32,500 UAH/t (for 50% oil content) with delivery to the factory during the week, which was more related to the strengthening of the dollar against the hryvnia by 1%, since dollar prices remained unchanged at $635-650/t excluding VAT.

Ukrainian farmers continue to restrain sunflower sales, hoping for further price increases, but it is necessary to take into account the gradual decline in prices for Argentine and Brazilian soybean oil, which is traded at a discount of $350/t compared to Chicago prices, and the decline in prices for sunflower oil from Argentina and India, which is restraining price increases in Ukraine.

A peace deal between the US and Iran will be reached soon and will stop the rise in oil prices, which will also increase pressure on vegetable oil prices.