Challenges in Procurement

The availability of sunflower seeds has further deteriorated, posing challenges in procurement. While sunflower oil prices have seen a slight increase in recent weeks, they have not been sufficient to dampen demand.

Price Trends and Outlook

According to Oil World, sunflower oil is expected to see a price increase in May compared to palm and soybean oil, as export stocks continue to dwindle to critically low levels.

Impact of Farmer Behavior

Difficulties in sourcing raw materials are compounded by farmers holding back sales in anticipation of future price hikes. At the current price levels, farmers are incurring significant losses with each sale, prompting them to retain their remaining stocks of sunflower seeds.

Geopolitical Unrest's Influence

The escalation of the war in Ukraine adds to market uncertainty and exacerbates supply disruptions. The recent Russian missile strike on the Pivdennyi port, one of Ukraine's key export hubs, further exacerbates concerns. This attack marks the 39th assault on Ukrainian ports, resulting in damage to 215 facilities to date.

Intensified Competition and Limited Reserves

Competition for sunflower seeds has intensified, with the remaining reserves expected to last only around four months until the next harvest. Many processing facilities have closed, operating only a few days per month due to the scarcity of raw materials.

As the challenges in the sunflower seed market persist, stakeholders brace for potential price hikes and navigate the uncertainties brought about by geopolitical tensions and supply constraints.