Oil refineries are running out of stocks: sunflower prices are approaching record levels
The shortage of sunflower on the Ukrainian market continues to stimulate price growth. The decrease in the production of this oil crop compared to last year leads to a lack of raw materials for Ukrainian factories. According to analysts, sunflower prices have already exceeded UAH 23,000/t, and according to forecasts, it may reach UAH 24,000–24,500/t by the end of October. This is due to the high demand for sunflower oil with a shortage of raw materials.
Factories were not able to accumulate stocks, as was the case in previous years. Most enterprises work “from wheels”, immediately directing the purchased sunflower to processing. In the past, processors had stocks for several months ahead, but now many are short of raw materials even for current needs. This leads to an increase in prices and increases competition between factories that are trying to provide themselves with the necessary amount of sunflower.
Given the current market conditions and seasonal factors, analysts are predicting further price growth that could surpass previous records set in 2020.
Verkhivtsevsky Oil Extraction Plant buys sunflower seeds on an ongoing basis at favorable prices.