Previous stock of sunflower in Ukraine is negligible - arrival of new crop is low and price is high

08-Aug-2024 06:12 PM

Kiev. During the marketing season of 2023-24, Ukraine's share in the global export market of sunflower seed and sunflower oil remained at 40 percent,

while the share of sunflower meal exports increased from 43 percent to 47 percent. The stock of last season's crop in Ukraine is almost exhausted, while despite some arrival of new crop,

the price has not opened. There is a possibility of good demand for it in September and the price of sunflower of the new season may remain slightly high.

Ukrainian crushers-processors are waiting for increased demand from importers. Sunflower has not been purchased by refining units.

The stock of last season's crop is negligible. Sunflower harvesting had started about 3 weeks before the scheduled time in Ukraine and other producing countries of the Black Sea region.

Trade analysts say that if the free on board export offer price of sunflower oil in the Black Sea region remains below $1000 per tonne, it may prove attractive for foreign importers.

It may have to compete with other edible oils. Activity in major crushing-processing units has been very slow for the last two months, which is hindering the supply of sunflower oil.

The demand for seed has become very high locally and refiners are struggling hard to get oil at the price level of $950-960.

It is understood that the crushing margin will decrease when the marketing season progresses. The price of refined oil from Ukraine has increased from $1000 to $1030,

which is likely to affect its demand in Europe. Sunflower production in Bulgaria, a neighboring country of Ukraine, is estimated to fall by 16 percent to 17.80 lakh tonnes.