Prices for sunoil in Ukraine fall to a 3-month low at $1,288/mt

Sunflower prices across the Ukrainian market have fallen to a three-month low as falling crude oil prices pressure the vegetable oil complex while the resurgence of a Covid-19 variant brings fears of stricter curbs on movement across Europe.

Prices for Ukrainian sunflower oil for shipment in February have fallen by an average of $25/mt a day over the last few days, to now stand at $1,288/mt FOB, and have practically reached their lowest level since the beginning of the 2021/22 season.

This has come against the background of a shortage of sunflower offers from Ukrainian farmers who despite a record harvest and a decline in prices for sunflower oil, continue to hold back sales as prices slide.

According to USDA estimates, the sunflower harvest in Ukraine is expected to reach a record 17.5 million mt, 19% higher than last year when production was hit by dry conditions across the region.

Under the influence of the wider falls across the oil complex, sunflower crushers have dropped their prices by more than UAH1,500-2,000/mt ($55-73/mt) over the last week to now stand at $18,500-19,500/mt ($678-715/mt).

However, sunflower supplies remain minimal and plant coverage is low, while crushers believe that the New Year holidays and the availability of sufficient working capital for farmers means that they are unlikely to begin sunflower sales before February.

Despite the low coverage of processors with raw materials, monthly exports of sunflower oil is increasing.

According to the State Statistics Committee, the export of sunflower oil in November increased by 32% compared to October, as a result of which exports from September to November of the 2021/22 season amounted to 1.35 million mt.

However, the figure is still 7.5% lower than a year earlier.

According to USDA estimates, the export of sunflower oil from Ukraine in the 2021/22 marketing year will rise by 21% to 6.65 million mt.