Purchase prices for sunflower are increasing, despite difficulties with processing and export

Another slowdown in exports and failures in the work of oil processing enterprises did not stop the increase in purchase prices for sunflower, caused by a shortage of offers and active export of seeds.

According to the UN, after November 19, no more than 5 ships leave the ports of Ukraine every day, although in previous weeks up to 10 ships left. This is due to the bad weather in Istanbul and staff rotation in the Joint Coordination Center (JCC).

In October, compared to September, Ukraine increased its export of sunflower meal by 10% to 390,000 tons, the largest since the beginning of the war, of which China bought 224,000 tons. However, meal exports slowed down in November, which made it difficult for processors, as oil can be shipped to the western borders, while it is very unprofitable to deliver meal to the EU.

Purchase prices for sunflower in Ukraine increased by another 500 UAH/t during the week to 16-16.5 thousand UAH/t or $440-450/t with delivery to the plant. At the same time, export prices for sunflower with delivery on DAP - Romania, Hungary and Bulgaria remained at the level of 550-570 $/t under the pressure of falling prices for soybeans and canola in the EU. Queues of 7-10 days at crossing points with Romania and Bulgaria reduced the activity of deliveries in this direction.

According to the European Commission, during the week of November 13-20, EU farmers increased their sunflower imports by 13,000 tons to 77,000 tons, and in 2022/23, they imported 1.16 million tons, which is 6.7 times higher than in the same period last year. - 172.7 thousand tons. Almost 86% of this volume, or 1 million tons, was purchased in Ukraine.

This year, Ukraine harvested only 9.8 million tons of sunflower, so in the second half of the season there will be a shortage of raw materials, although the main processing plants located in the Black Sea ports have been almost inactive since the beginning of the war.

The global sunflower oil market is supported by the delay in harvesting sunflowers in the Russian Federation, where as of November 24, 13.3 million tons (out of the forecasted 16.5 million tons) of sunflower were threshed from 7.3 million hectares or 75% of the area with a yield of 1.81 tons/ha. while last year at this time, 15.4 million tons were harvested from 9.6 million hectares with a yield of 1.61 tons/ha. Now snow and frost have stopped the work.