In Ukraine, sunflower seed prices started to slowly move up – for how long?

Source

APK-Inform

22225

According to the monitoring data of APK-Inform Agency, bid prices for sunflower seed began to move upwards from the beginning of this week. At the same time, trading activity on the domestic market remains extremely low and there is a high probability of a reversal of this trend.

During the 2 weeks of the sunflower seed harvesting campaign, the prices of processing enterprises for this oilseed fell by an average of 5`000 UAH/t to 9`500-11`500 UAH/t CPT. This happened under the pressure of a high supply of sunflower seed of the new harvest, as well as due to a significant drop in prices on the export market of sunflower oil.

"So, the dry weather that prevailed in the country since the beginning of September helped to speed up the pace of sunflower seed harvesting and increase the supply of raw materials to the domestic market. In such conditions, many large processors have already managed to form sufficient volumes for work for the next month and a half. And at the end of last week, they once again lowered prices – to a minimum since July 2022. This became the main factor in the suspension of the sale of oilseeds by farmers, who, at the formed level of bid prices, already noted their unprofitability," analysts of APK-Inform note.

However, the expected recovery of Ukrainian sunflower seed exports to Bulgaria and more attractive prices of export-oriented companies in ports compared to processors, which last week reached 11`800-12`200 UAH/t CPT, also contributed to the decrease in trade activity on the domestic market.

Thus, the reduction in the supply of oilseed within the country and the increase in activity in the export direction already contributed to a slight recovery of prices – by UAH 100-300/t, from the beginning of the current week.

However, the situation surrounding the news about the possible introduction of quotas for the import of Ukrainian sunflower seed by Bulgaria does not yet contribute to a more active growth of oilseed prices within the country.

In addition, the sunflower seed market will be under pressure from expectations of an increase in the harvest of this crop in Ukraine, difficulties with logistics when exporting both raw materials and processed products, an increase in the load on western crossings and the accumulation of queues of wagons in this direction, as well as moderate activity in ports due to systematic shelling.

You can learn more about the price trends in the Ukrainian fat and oil industry at the XXI International Conference "Fat&Oil Industry-2023", which will be held on October 23 in Lviv (Ukraine).

Register in the conference on the APK-Inform website.

Don't miss the lowest price – it will increase from September 23!

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