Sunflower Prices Climb on Higher Oil Prices

Sunflower prices in Ukraine have increased as global vegetable oil markets strengthen. Farmers are holding back sales, even as processors raise prices for sunflower seeds with 50% oil content to USD 0,659–0,678 per kg.

The surge in prices comes after the USDA reduced its forecast for US soybean production by 2.58 million tonnes. This news caused March soybean futures on the Chicago Board of Trade to climb 5% to USD 0,386 per kg, while soybean oil futures rose 7.5% to USD 1,012 per tonne.

Vegetable Oils See Broad Price Increases

Sunflower oil prices have also risen, with the average delivery price now at USD 1,305 per tonne, a 4% increase.

Palm oil followed the same trend, with March futures on Malaysia’s Bursa Exchange rising to USD 0,999 per kg after a significant reduction in production and inventories in December. Crude oil prices also played a role, hitting USD 81 per barrel due to tighter US sanctions on Russian oil.

Higher prices for soybean oil and palm oil are pushing up the premium for sunflower oil. Traders expect Ukrainian sunflower oil prices for delivery to Black Sea ports to recover to USD 1,100 per tonne. However, forecasts of increased sunflower production in Russia could limit further price increases.

Global Production Update

The USDA’s January report raised the global sunflower production estimate for the 2024/25 marketing year to 50,69 million tonnes, an increase of 0,18 million tonnes. Key details include:

• Russia’s Production: Revised up by 0,25 million tonnes to 16,55 million tonnes.
• Sunflower Oil Production: Increased to 20,05 million tonnes, with Russia contributing 6,71 million tonnes.
• Global Exports: Estimated at 12,43 million tonnes, including 4,17 million tonnes from Russia.

Ending stocks remained steady at 2,25 million tonnes.

Conclusion

Sunflower prices in Ukraine are rising, driven by strong global demand for vegetable oils and a tight domestic supply. While prices for sunflower oil are recovering, competition from increased Russian production could influence market trends. For now, higher premiums and strong demand are keeping prices firm.





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