At the end of the season, the Ukrainian sunflower seed market is showing record price growth, which is due to both high demand and a significant reduction in raw material stocks. According to GrainTrade, the cost of sunflower seeds has reached 27–29 thousand hryvnia per ton, and with fast delivery to the factory, the price has reached 29 thousand.
Farmers are actively responding to changes in market conditions, raising their own offers to 29–30 thousand hryvnia per ton, taking advantage of the opportunity to maximize profits during a period of high demand.
The shortage of sunflower seeds is forcing processing companies to adapt. Some factories have switched to processing alternative raw materials, such as soybeans or rapeseed, while others have temporarily suspended production in preparation for the new season.
Due to the shortage of raw materials on the domestic market, there has been an increase in prices for sunflower oil, especially for refined and bottled products. Demand for crude oil under FCA terms has risen to 58-60 thousand hryvnia per ton, which corresponds to approximately 1.1-1.2 thousand US dollars. At the same time, export prices in ports remain at $1,150–1,160 per ton.
Sunflower oil exports are showing strong growth: in July alone, 464 thousand tons were exported for a total of $537.9 million. Over the 11 months of the season, Ukraine exported about 5 million tons of oil, which is equivalent to approximately 10 million tons of sunflower seeds grown out of a total harvest of 11.5 million tons.
An additional factor in the price increase was the predicted decline in harvests in southeastern Ukraine due to prolonged drought, which poses risks to future supplies of raw materials.
Dear farmers, we advise you to take advantage of the situation and sell your sunflower harvest at high prices: “This is the best time to sell the new sunflower harvest at the highest possible prices, as the supply of sunflower and soybeans on the world market will increase in September and October. In addition, an increase in the supply of cheap soybeans from the US and rapeseed oil from the EU is expected.”