Prices For Sunflower Oil in Ukraine And World Growing Due To Limited Supply
29/05/2024 (Open4Business) - In May, Ukrainian traders contracted 620 tons of Ukrainian sunflower oil for export, which is showing very fast growth, but in July-August, the export rate may slow down, according to the analytical cooperative “Start”, created within the framework of the All-Ukrainian Agrarian Council (AAC).
“Sunflower oil prices are rising due to limited supply on the world market. The main producers of sunflower oil in the world are Russia and Ukraine. Russia exports the majority of its production to China, while other buying countries turn to Ukraine, where supply is limited. This leads to higher prices for sunflower oil,” the analysts explained.
According to them, the purchase price for sunflower in Ukraine has already exceeded 18 thousand UAH/ton. However, the mills are ready to buy it even at high prices due to low stocks. In addition, the resumption of port operations in March-February led to a significant reduction in sunflower stocks, which also affects the price increase.
Processing plants are operating with minimal profit in anticipation of the new oilseed season. The current prices often bring minimal profit or even losses to the plants, but their main goal is to maintain operations until the rapeseed season starts, when a new crop will be processed, experts believe.
“This week we expect further growth in sunflower prices. The crushing plants will continue to buy sunflower at the current prices, which range from 18.1-18.2 thousand UAH. By the end of the week and early next year, purchase prices are expected to reach 19 thousand UAH/ton,” Pusk predicts.