Weekly Product Updates

W47 Sunflower Update: Rising Sunflower Purchase Prices in Ukraine, EU Imports Decline, and China's Imports Surge

Sunflower Seed
China
Market & Price Trends
Refined Sunflower Oil
Kyrgyzstan
Published Nov 30, 2023
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Surge in Sunflower Oil and Meal Exports Elevates Purchase Prices in Ukraine

The increase in exports of sunflower oil and meal via Black Sea ports has driven up sunflower purchase prices in Ukraine. Demand prices for sunflowers in Ukraine in W47 have risen by USD 13.79 and 22.06 per metric ton (mt) to USD 399.88 and USD 413.67/mt with delivery to the factory. Despite this, producers are holding back on sales in anticipation of further price increases. However, strong competition for Ukrainian oil on the global market comes from Russian oil, which has been gaining ground in traditional markets, such as China and India, over the past few years. Export demand for Ukrainian sunflowers remains low due to the ban on deliveries to neighboring European Union (EU) countries, but demand prices for Delivered-at-Place (DAP) to Bulgaria have increased to USD 420 and USD 430/mt.

EU Witnesses 85% Drop in Sunflower Imports in MY 2023/24 In the 2023/24 marketing year (MY) starting Jul-23 to present, EU countries have significantly reduced their imports of oilseeds by 23%, to 6.34 million metric tons (mmt). The decline is most pronounced in sunflower seed purchases, dropping by 85% from 309,690 mt in the 2022/23 MY to 166,500 mt in the 2023/24 MY. This substantial decrease is primarily attributed to a sharp reduction in oilseed supplies from Ukraine, plummeting from 1.01 mmt to 26 thousand mt.

China's Sunflower Oil Imports Surge in Oct-23

In Oct-23, China's total import volume of sunflower oil surged to 92,500 mt, valued at USD 88 million. This marked a 25.60% month-on-month (MoM) increase and a substantial rise of 37 thousand mt compared to the same period the previous year. Moreover, from Jan-23 to Oct-23, China's total imports of virgin sunflower oil reached 1.33 mmt, showcasing a significant increase of 985,100 mt compared to the previous year, representing a remarkable surge of 280.65%. The main source countries for sunflower oil imports to China in Oct-23 were Russia, Ukraine, and Kazakhstan, with Russia contributing the largest share at 71.79% of the total imports. Despite the increased imports, the spot price for domestic sunflower oil in China has remained relatively stable, with crude sunflower oil priced at USD 1,156.90 to 1,177.94/mt and first-grade sunflower oil at USD 1,234.03 to USD 1,248.05/mt.

Kyrgyzstan Reduces Sunflower Oil Imports by 19.1% in First Nine Months of 2023

Kyrgyzstan has reduced its sunflower oil imports by 19.1% year-on-year (YoY) from Jan-23 to Sept-23, amounting to 25,200 mt, compared to the 31,200 mt imported during the same period in 2022. The import of sunflower oil in value decreased by 41.8% YoY, reaching USD 27.2 million. Of the total sunflower oil imports, 83.7% originated from Russia, while 16% came from Kazakhstan. Small quantities of oil were also imported from Armenia and Azerbaijan.

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