Sunflower prices in Ukraine continue to rise as farmers curb sales.
Frost and snowfall in Ukraine slowed grain logistics, but sunflower seed prices climbed to $610–630/t as processors raised bids amid firmer oil values. Exports reached 134,000 tons in early February. However, weaker Malaysian palm oil and Argentina’s harvest outlook may cap further sunflower oil price gains.
A new wave of frost and snowfall in Ukraine has once again slowed grain deliveries to ports, while processing plants have only just resumed operations in anticipation of a seasonal increase in sunflower supply, trying to sell sunflower oil at high prices.
Over the course of the week, sunflower seed purchase prices in Ukraine increased by another 500 UAH/t to 30,000-31,000 UAH/t or $610-630/t excluding VAT (for 50% oil content) with delivery to the plant. Meanwhile, processors at ports are willing to pay more for larger shipments, even though plants within the country are well-supplied with raw materials and operate more reliably.
The increase in demand prices for sunflower oil by $10-20/t to $1285-1290/t with delivery to ports allowed processors to increase purchase prices for sunflower seeds.
At the same time, demand prices for sunflower oil with delivery to India remained at the level of $1400-1410/t CIF Mumbai during the week under pressure from falling palm oil prices.
Malaysian palm oil prices for May fell 5% to $1,030/t in two weeks as a result of a 15% reduction in exports over the first 15 days of February compared to the same period in January.
News of the sale of approximately 300,000 tons of sunflower seeds from Argentina to Bulgaria has lowered sunflower oil prices in the EU, so Ukrainian processors are rushing to sell the oil at still-high prices.
From February 1 to 11, Ukraine exported 134 thousand tons of sunflower oil (mainly to EU countries), while in January exports amounted to about 393 thousand tons, and in December – 550 thousand tons.
Holidays in China and reduced demand in India will limit the growth of sunflower oil prices, so processors in Ukraine will be cautious in purchasing sunflower seeds, although warmer temperatures and increased sunflower supplies are expected this week.
As of February 12, over 2 million tons of sunflower seeds have been harvested from 36.4% of the acreage in Argentina, with a yield of 2.2 tons per hectare. According to the weekly report of the Buenos Aires Grain Exchange (BAGE), in the main sunflower-growing regions (south of Buenos Aires and La Pampa), approximately 75% of the crops are in excellent or good condition, but the mass harvest will not begin until late February or early March.
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Source : Ukr Agro Consult
