Sunflower Oil Prices Support Sunseed Market in Ukraine, but Rapeseed Prices Limit Growth
Increased export demand for sunflower oil in Ukraine has led to a price rise of USD 10-15 per tonne, bringing prices at Black Sea ports to USD 1,120-1,130 per tonne. This has driven higher sunseed purchases by processors. Additionally, with the euro strengthening against the dollar, EU demand prices increased to USD 1,160-1,200 per tonne for delivery to Bulgaria or Greece. However, further price growth remains constrained due to falling rapeseed and other vegetable oil prices.
Demand for Ukrainian sunseed from European processors remains weak. Many factories, particularly in Bulgaria, are idle due to high costs associated with importing raw materials. Some plants have shifted to rapeseed processing, particularly as rapeseed prices declined from EUR 530 to 488.5 per tonne in March, influenced by lower canola prices in Canada following newly imposed import duties by the U.S.
With significant sunflower stocks held by farmers and low processing margins, analysts anticipate a potential decline in sunflower prices over the next month. As many processing plants shift to soybeans and rapeseed, the demand for sunflower seeds may weaken further.
Sunseed and Sunflower Oil Price Trends
Sunseed Procurement and Processing Challenges
Purchase prices for sunseed with 50% oil content remained between 26,500-27,500 UAH per tonne (delivered to processing plants). Increased competition among processors has kept demand high, but smaller plants continue to struggle due to low processing margins. For high-oleic sunflower oil, processors offer a premium of 5,500-6,000 UAH per tonne.Demand for Ukrainian sunseed from European processors remains weak. Many factories, particularly in Bulgaria, are idle due to high costs associated with importing raw materials. Some plants have shifted to rapeseed processing, particularly as rapeseed prices declined from EUR 530 to 488.5 per tonne in March, influenced by lower canola prices in Canada following newly imposed import duties by the U.S.
Global Sunflower Market Trends
Turkish Grain Agency Resumes Sunflower Oil Purchases
After a two-year hiatus, the Turkish Grain Agency (TMA) will hold an international tender on March 20 for 18,000 tonnes of unrefined sunflower oil. The delivery is scheduled for April 2-21 to the ports of Iskenderun/Mersin (four batches of 3,000 tonnes each) and Tekirdag (two batches of 3,000 tonnes each). This tender is expected to set a key price benchmark for the sunflower oil market.With significant sunflower stocks held by farmers and low processing margins, analysts anticipate a potential decline in sunflower prices over the next month. As many processing plants shift to soybeans and rapeseed, the demand for sunflower seeds may weaken further.
