Logistics challenges put pressure on sunflower oil prices in Ukraine despite strong global demand
Ukraine’s sunflower oil prices remain under pressure from rising logistics costs, shipment delays and accumulating stocks, risking temporary plant shutdowns. Ukrainian oil trades at $1,100/t FCA, while declining soybean oil futures and stable rapeseed oil prices reflect changing global vegetable oil market dynamics.
Sunflower oil prices in Ukraine remain under pressure due to rising logistics costs and shipment delays, despite relatively high prices on the global market. Ukrainian sunflower oil traded at around $1,100/t FCA plant and $1,200/t delivered to the western border over the past week. Meanwhile, the accumulation of products at processing facilities is creating a risk of temporary shutdowns at some plants.
In the international market, sunflower oil bid prices in India remain at $1,390–1,400/t CIF Mumbai, while offers from the Black Sea region stand at $1,400–1,450/t CIF Mumbai. Turkish importers are willing to purchase sunflower oil at $1,320–1,340/t, but Ukrainian exporters face competition from cheaper Russian supplies.
Soybean oil prices have been declining. December futures on the Chicago Board of Trade (CBOT) fell by 2.8% over the week to $1,498/t following an upward revision to the US soybean crop forecast. Spot prices in Brazil remained at $1,220–1,240/t FOB, while Argentine offers stood at $1,200–1,220/t FOB. Meanwhile, soybean oil futures on China’s Dalian exchange rose by $20/t to $1,330–1,335/t.
The European rapeseed oil market remained relatively stable. Prices traded within a range of $1,385–1,390/t FOB Netherlands during the week, amid increasing supply and a weaker euro against the US dollar. At the same time, rising palm oil prices are supporting other vegetable oil markets, as they may encourage importers to adjust their purchasing patterns.
Further pressure on Ukraine’s sunflower oil market could intensify as sunflower harvesting accelerates and raw material supplies increase. With export opportunities constrained and road and rail transportation costs rising, domestic prices may remain low even if global market prices stay relatively high.
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Source : Ukr Agro Consult
