Sunflower oil is becoming more expensive in Ukraine and the world

Sunflower oil is becoming more expensive in Ukraine and the world due to limited supply.

In May, 620 tons of Ukrainian sunflower oil were contracted for export, which is taking place at a very fast pace, the All-Ukrainian Agrarian Council reported.

However, in July-August the pace of export may slow down. This was discussed during the analytical briefing of the PUSK cooperative, created within the framework of the Council.

Sunflower oil prices are rising due to limited supply on the world market. The main producers of sunflower oil in the world are the Russian Federation and Ukraine. Russia exports most of its products to China, while other buyer countries turn to Ukraine, where supply is limited.

This leads to an increase in sunflower oil prices. The purchase price of sunflower in Ukraine has exceeded 18 thousand hryvnias per ton, and factories are ready to buy it even at high prices due to the low level of stocks.

The resumption of port operations in March-February led to a significant decrease in sunflower stocks, which also affects the rise in prices, noted the analytical department of PUSK.

Refineries operate with minimal profit in anticipation of the new season of oil crops. Current prices often make the mills a minimal profit or even a loss, but their main goal is to keep them going until the beginning of the canola season, when a new crop arrives for processing.

Sunflower prices are expected to rise further this week. Factories will continue to buy sunflowers at current prices, which range from UAH 18,100 to 18,200 . By the end of the week – the beginning of the next, it is expected that the purchase prices will reach 19 thousand hryvnias per ton.

Read also: USDA: Ukraine will remain the leading exporter of sunflower processing products