Sunflower Oil Prices in Ukraine Feel Pressure from Falling Palm Oil

Declining palm oil prices have created challenges for sunflower oil prices in Ukraine, as global competition and shifting buyer preferences influence the market.

Malaysian palm oil futures dropped to USD 1,07 per kg this week, reflecting a decline driven by softer demand from key importers like India. India increased its overall vegetable oil imports to 1,628,000 tonnes in November, including 341,900 tonnes of sunflower oil (a 43% increase) and 410,000 tonnes of soybean oil (up 20%). Palm oil imports grew by just 5% to 850,000 tonnes, signaling a shift toward more affordable options.

Slower Sunflower Oil Exports from Ukraine

Ukraine exported 1,500,000 tonnes of sunflower oil in the current marketing year, including 371,500 tonnes in September, 484,000 tonnes in October, and 481,000 tonnes in November. However, export volumes dropped in December, with only 165,000 tonnes shipped in the first 12 days—a notable decline compared to November.

Prices for Ukrainian sunflower oil have fallen to USD 1,09-1,10 per kg for deliveries to Black Sea ports and USD 1,15 per kg for shipments to Poland and Bulgaria. Despite reduced prices, buyers in Europe remain cautious due to sufficient stock levels.

Sunflower Oil and Seed Prices See Adjustments

The average price of sunflower oil currently stands at USD 1,28 per kg, while sunflower seeds with 50% oil content are priced between USD 0,92-0,94 per kg. Processors are offering slight premiums for large purchases to ensure steady supply.

Meanwhile, sunflower meal prices increased to USD 0,20 per kg, supported by strengthening feed corn and wheat prices. This has provided some relief to processors by improving profit margins.

Palm Oil Supply Cuts May Ease Pressure

Heavy rains in Malaysia have delayed palm oil harvesting, leading to reduced production for the fourth consecutive month. This could stabilize palm oil prices, indirectly benefiting the sunflower oil market. However, increasing global soybean production continues to exert downward pressure across the vegetable oil sector.

Conclusion

Ukraine’s sunflower oil market is navigating a challenging period as global competition and lower palm oil prices weigh on profitability. While supply constraints in palm oil may provide temporary support, Ukrainian exporters will need to adapt to market shifts and evolving buyer preferences in the months ahead.





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