Increasing Complexity in the Global Commodity Market

The challenges for large-scale industries are intensifying, especially in the international commodity markets. Both soybeans and corn from the United States and South America are set for high supply volumes, creating downward pressure on prices due to limited market compatibility with attractive pricing.

Sunflower Oil: A Market on the Rise

Unlike other commodities, sunflower oil prices are on a significant upward trajectory. According to APK-Inform, sunflower oil prices in Ukraine have reached a three-year high, largely due to the country’s leading role in sunflower oil exports, which heavily influences global market prices.

Sunflower Prices Climb to Meet Contractual Demand

In Ukraine, sunflower seed prices surged to approximately USD 630 per ton for delivery, driven by limited seed availability. Companies needing to fulfill contractual obligations raised prices by an additional USD 25 compared to the previous week, paying even more for high volumes with elevated oil content.

Historical Price Comparison and Market Dynamics

The current pricing surge brings to mind the historical high of USD 650 per ton recorded in March 2021. Although processors initially attempted to reduce sunflower seed prices to USD 590 per ton due to falling vegetable oil prices, a smaller-than-expected harvest has maintained upward pressure on raw material costs.

Reduced Production Forecasts Amplify Price Pressure

Ukrainian sunflower production forecasts have been lowered to 10-10.5 million tons, a decrease from the USDA’s earlier estimate of 12.5 million tons. This reduction in expected output is further driving prices, supporting margins in processing and enabling companies to pay higher prices for raw materials.

Sunflower Oil and Meal Prices Continue to Climb

Over the past week, sunflower oil prices have increased by USD 20-30 per ton, reaching USD 1050-1060 per ton, while sunflower meal prices have risen by USD 5 to 220-225 USD per ton for delivery to Black Sea ports. These rising prices reflect the ongoing supply and demand challenges within the global sunflower oil market.





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