Sunflower prices in Ukraine are falling due to reduced competition between processors

Demand for sunflower in Ukraine has begun to decline as more and more plants stop for preventive maintenance and preparation for the new rapeseed season.

The decrease in the number of sunflower buyers immediately led to a decrease in purchase prices, which are likely to continue to fall in June.

Over the past week, purchase prices for sunflower (with 50% oil content) in Ukraine decreased by 200-300 UAH/t to 31,300-33,000 UAH/t or $630-660/t excluding VAT. Processors were reluctant to pay additional premiums for large batches of sunflower, as they were able to secure the necessary stocks, even by purchasing raw materials in small batches.

Last week, demand prices for sunflower oil in India remained at $1,400-1,410/t CIF Mumbai, although prices for Russian sunflower oil increased by $10/t to $1,300/t FOB, and for Ukrainian - by $5-10/t to $1,330-1,335/t DAP - Black Sea ports.

Active supplies of sunflower oil from Argentina are increasing competition in the market, so we should not expect an increase in prices for oil, and accordingly for sunflower, in the coming months.

Favorable cool weather with periodic rains contributes to the formation of a good sunflower harvest in the new season and increases the potential of the rapeseed harvest in Ukraine and the EU, so we expect an increase in the supply of vegetable oils from the new harvest and increased competition for buyers.