Sunflower in Ukraine continues to fall in price against the background of falling prices for meal and oil

Published 2024년 2월 19일

Tridge summary

Sunflower prices in Ukraine have dropped due to a decrease in global vegetable oil prices, significant raw material stocks at processing plants, and low export demand. The rise in soybean oil prices, driven by accelerated soybean harvests in Brazil and improved weather in Argentina, is further lowering prices in the palm and sunflower oil markets. Despite high sunflower oil exports in February, processors are reducing their purchase prices due to falling oil prices and increasing logistics costs. The issuance of the first licenses for sunflower exports under a simplified system by the Ministry of Economy of Ukraine is not expected to significantly boost exports.

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Original content

The decrease in world prices for vegetable oils, significant stocks of raw materials at processing plants and almost no export demand lower sunflower prices in Ukraine. Accelerating soybean harvests in Brazil and improving weather in Argentina are putting upward pressure on soybean oil prices, leading to lower prices in neighboring palm and sunflower oil markets. March soybean futures on the Chicago Mercantile Exchange fell 3.5% to $1,004/t during the week (-3% for the month) on the back of higher refining and soybean oil inventories in the United States. According to NOPA, the processing of soybeans in the United States in January increased by 3.8% compared to the same period in 2023 to a record 5.06 million tons for this month, and soybean oil stocks increased by 10.8% compared to December % to 684.2 thousand tons. Demand prices for sunflower oil during the week remained at $825/t with delivery to buyers, but in Ukraine, demand prices fell to $735-740/t with delivery to ports ...

Source: Graintrade