Last week, sunflower seed prices in Ukraine surged to their highest levels in three years, reaching €495-€539 per ton as supply shortages persist. Despite a slight increase in seed availability, the market remains tight, pushing processors to offer substantial price premiums.

Sunflower Seed Shortage Drives Prices Higher

Ukrainian companies are reporting a minor increase in the supply of oilseeds, but the overall availability is still far from sufficient to meet demand. To fulfill contractual obligations, processors are offering premiums of several euros per ton, depending on the urgency, volume, and oil content of the seeds.

However, despite rising prices, many processors are facing challenges in maintaining profitability. Some report that margins are slim, if not non-existent, due to the high cost of raw materials.

Rising Costs Impact Sunflower Oil Export Prices

The sharp increase in sunflower seed prices has also contributed to a rise in the cost of sunflower oil exports. Last week, export prices climbed by an additional €18-€27 per ton, reaching €929-€934 per ton on a CPT port basis.

This price rise reflects the ongoing supply challenges and the competitive global market for sunflower oil, putting further pressure on both buyers and sellers.

Soybean Prices Follow Upward Trend

In addition to sunflower seeds, soybean prices in Ukraine also increased by €4.40-€8.80 per ton last week. This rise is largely attributed to farmers' continued reluctance to sell their crops, further limiting available supply and driving up prices.

Russian Sunflower Prices Also on the Rise

At the beginning of the month, the average cost of sunflower seeds in Russia was €379 per ton, while the export price of sunflower oil stood at €873 per ton. This increase mirrors the trends seen in Ukraine, as both countries grapple with tight supply conditions.





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