Lower Global Oil Prices Impacted Sunflower Oil Prices in Ukraine   

The prices for sunflower and sunflower oil in Ukraine have dropped significantly due to declining global oil and vegetable oil prices. A combination of economic factors, including geopolitical tensions and market responses to tariff impositions, has created downward pressure on prices.

Global Market Influences on Sunflower Oil Prices

May Brent crude futures dropped by 2.1% to USD 0,071 per kg, accumulating a 6.3% loss over two weeks. Market expectations of reduced global demand due to an economic slowdown and disrupted supply chains have driven this decline. Additionally, OPEC+'s decision to maintain its planned production increase in April added to the pressure on oil prices.

Ukrainian Sunflower Oil and Meal Prices Drop

In Ukraine, sunflower oil demand prices decreased by USD 0,01-0,02 per kg, bringing the price range to USD 1,10-1,12 per kg at Black Sea ports. Consequently, sunflower purchase prices fell by UAH 400-500 per tonne to UAH 26,500-27,000 per tonne (for 50% oil content, delivered to the plant).

The feed corn market also saw a downturn, with prices dropping by USD 0,005-0,008 per kg, which in turn reduced sunflower meal prices by USD 0,005-0,006 per kg to USD 0,22 per kg, delivered to the port. These factors are squeezing processing margins and exerting additional pressure on sunflower purchase prices.

Current Market Prices for Oils and Sunflower Products

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Conclusion: Sunflower Oil Prices Likely to Decline Further

The current trend of declining prices for crude, palm, and soybean oils is likely to continue influencing the sunflower oil market in Ukraine. With the Argentine sunflower harvest beginning and global vegetable oil prices under sustained pressure, Ukrainian sunflower oil prices may experience further declines in the near future. For market participants, closely monitoring global oil trends and local processing margins will be crucial to navigating this challenging period.