Most oil extraction plants in Ukraine stopped working due to Russia’s military aggression against Ukraine, but in April-May, the plants in the western, central and southern regions of the country began to resume operations due to an increase in sunflower processing margins up to $200/tonne.
“Currently, processors are actively buying sunflower against the backdrop of disappointing production forecasts for the next season… Some plants provide processing services at a price of $80-150/tonne, while others buy sunflower at UAH 15,000-16,500/tonne, receiving a processing margin of up to $200/tonne,” according to the website of the electronic grain exchange GrainTrade.
According to its data, the resumption of the work of Ukrainian oil extraction plants in the western, central and even southern regions of the country is caused by a sharp reduction in the price of sunflower due to difficulties with its export from Ukraine due to the blockade of the country’s seaports by Russian ships.
GrainTrade notes that the price of sunflower will continue to grow, as it is under pressure from its significant stocks from producers and processors, as well as difficulties with the export of oil products – sunflower meal and cake.
“Now it is difficult for processors to sell meal and cake to European consumers due to the increase in logistics costs and falling prices in the EU amid an increase in the supply of Ukrainian products. At the same time, producers are in no hurry to sell sunflower seeds at low prices, expecting an increase in production costs in the new season,” the grain exchange said.
