Sunflower and sunflower oil market: trends and forecasts
The market for sunflower and sunflower oil looks like this:
The domestic market of Ukraine continues to see a downward trend in prices for sunflower and its processed products. According to analysts at Spike Brokers, the price of sunflower (46% oil content) has decreased by UAH 500-600/t over the past week and continues to fall.
The main factor remains the decline in the price of oilseeds on the world market.
Causes and consequences of the price decline:
- Global trends: Global prices for vegetable oils, including sunflower, are declining due to competition with palm and soybean oil, which are currently offered at lower prices.
- Overproduction: High sunflower yields in Ukraine and the Black Sea region are creating a supply surplus, which is putting pressure on domestic prices.
- Declining demand from processors: Despite the drop in raw material costs, processing plants remain uncovered due to low demand for oil in foreign markets.
- Changing export conditions: Supply restrictions to certain countries and logistical difficulties also affect pricing.
Current prices (DAP Ukraine):
Sunflower (46% oil content, dry) – $520-530/t
Sunflower oil (Odesa) – $1,010-1,080/t
It is expected that the situation may stabilize in the near future if export demand increases or if there is a correction in the global vegetable oil market. Analysts advise farmers to closely monitor price dynamics and strategically plan sales to minimize possible losses.