Ukraine: Decline in Sunflower Harvest and Tight Market Supply Drive Prices for Hulled Sunflower Seeds Higher
Ukraine: Decline in Sunflower Harvest and Tight Market Supply Drive Prices for Hulled Sunflower Seeds Higher
Kyiv, November 8 – Ukraine's sunflower harvest is projected to fall to 10.8 million tons this year, a sharp drop from nearly 15 million tons last year, according to the Ukrainian Agribusiness Club (UCAB). This estimate is below the 12.5 million tons the Oil and Fat Association, Ukrolyaprom forecasted. As of November 8, the Ukrainian Ministry of Agrarian Policy reported that 9.7 million tons of sunflowers had been harvested from 95.2% of the sown area.
The reduced harvest has led to a limited supply of sunflower seeds suitable for hulling, significantly pushing up prices. Currently, hulled sunflower seeds are priced at around €1.20/kg ex-works (FCA) in Bulgaria and Moldova. This price increase is further fueled by delays in fulfilling contracts signed before the harvest at a much lower price of €0.78/kg (DAP). Many buyers who relied on these lower-cost contracts are now forced to source additional volumes on the market, which is driving demand even higher.
This uncertainty around sunflower production is not limited to Ukraine: the Balkan and Black Sea regions are also expected to see a reduction in sunflower production for the 2024/25 season. Industry agencies estimate a total production of about 33 million tons, down by 5.86 million tons from the previous season's 38.86 million tons.
Given the tight supply and rising demand, market participants anticipate further price increases for hulled sunflower seeds as buyers seek to meet their needs in a challenging market.
Kyiv, November 8 – Ukraine's sunflower harvest is projected to fall to 10.8 million tons this year, a sharp drop from nearly 15 million tons last year, according to the Ukrainian Agribusiness Club (UCAB). This estimate is below the 12.5 million tons the Oil and Fat Association, Ukrolyaprom forecasted. As of November 8, the Ukrainian Ministry of Agrarian Policy reported that 9.7 million tons of sunflowers had been harvested from 95.2% of the sown area.
The reduced harvest has led to a limited supply of sunflower seeds suitable for hulling, significantly pushing up prices. Currently, hulled sunflower seeds are priced at around €1.20/kg ex-works (FCA) in Bulgaria and Moldova. This price increase is further fueled by delays in fulfilling contracts signed before the harvest at a much lower price of €0.78/kg (DAP). Many buyers who relied on these lower-cost contracts are now forced to source additional volumes on the market, which is driving demand even higher.
This uncertainty around sunflower production is not limited to Ukraine: the Balkan and Black Sea regions are also expected to see a reduction in sunflower production for the 2024/25 season. Industry agencies estimate a total production of about 33 million tons, down by 5.86 million tons from the previous season's 38.86 million tons.
Given the tight supply and rising demand, market participants anticipate further price increases for hulled sunflower seeds as buyers seek to meet their needs in a challenging market.