Sunflower prices in Ukraine fell after attack on Ukrainian oil tanker

After the attack on the Viva ship with Ukrainian sunflower oil, some shipowners have become more cautious about calling at Ukrainian ports.

This was reported by Sunstone Brokers partner Serhiy Repetskyi in a comment to Latifundist.com. 

According to him, sunflower prices in Ukraine have begun to decline. After the attacks on tankers and the jump in freight rates, processors are trying to shift additional costs to purchase prices.

“Prices for oil within the country are declining. Farmers are given UAH 500 less than a week ago — and this is just the beginning. If the farmer agrees, they will continue to lower them even more, because these UAH 500 do not fully compensate for the increase in freight rates and the fall in prices on world markets,” Serhiy Repetsky noted.

In particular, he said that factories are trying to contract volumes at least until Christmas, after which a pause is expected. At the same time, the price of January Ukrainian oil also fell on world markets: Friday trading in India showed minus $17 compared to the levels at the beginning of the week.

Also, some shipowners became more cautious about calling at Ukrainian ports after the attack on the Viva ship. In several cases, freight increased by 20–50%.

As a reminder, on December 13, Russia attacked the Turkish ship “Viva”, which was heading to Egypt via the sea corridor with sunflower oil on board.