Processors pay more: what is behind the rise in sunflower prices
17 February 16:56
In Ukraine, purchase prices for sunflower seeds have risen sharply to 30–31 thousand UAH per ton. The main factors are a slowdown in deliveries due to frost and snowfall, as well as a revival in the work of processing plants, which are trying to take advantage of high prices for sunflower oil.
This was reported by the Electronic Grain Exchange, with information distributed by "Komersant Ukrainian".
What is happening with prices
According to the exchange:
- prices rose by another 500 UAH/t over the week;
- the range is 30,000–31,000 UAH/t or 610–630 USD/t excluding VAT;
- the price is calculated for sunflower seeds with an oil content of 50% with delivery to the factory.
Processors in ports are willing to pay a higher price for large batches, while factories in inland regions have a more stable supply of raw materials.
Why sunflower seeds have become more expensive
There are several reasons for this:
Weather
Frost and snowfall have complicated logistics, temporarily reducing the supply of seeds on the market.
Slow start to processing
Processing plants have only just resumed operations after a pause and are expecting a seasonal increase in supply. At the same time, they are trying to sell oil as quickly as possible at favorable prices.
Rising oil prices
Demand prices for sunflower oil rose to $1,285–1,290/t delivered to ports, allowing processors to revise their purchase prices for raw materials.
Exports: what the figures say
According to analysts’ estimates:
- Ukraine exported 134,000 tons of sunflower oilbetween February 1 and 11;
- in January — about 393 thousand tons;
- in December — about 550 thousand tons.
The European Union countries remain the main export destinations. Experts attribute the decrease in export volumes compared to December to seasonality and supply disruptions.
What’s next: cautious optimism
Despite local price increases, pressure remains on the global market due to:
- cheaper vegetable oils;
- the entry of new export batches from other countries into the market.
Therefore, the exchange predicts that Ukrainian processors will be cautious in purchasing sunflower seeds, at least until supplies stabilize. In the near future, forecasters expect temperatures to rise, which may lead to an increase in seed supply and a decrease in price pressure.
