The deficit in the sunflower market in Ukraine continues to push prices up, due to the decrease in production of this oilseed compared to last year, Ukrainian plants are experiencing a shortage of raw materials, according to the analytical cooperative “Start”, created within the framework of the All-Ukrainian Agrarian Council (AAC).
“The price of sunflower has already exceeded 23 thousand UAH/t, and according to the seasonal model, the average price may reach 24 thousand-24.5 thousand UAH/t at the end of October. This is due to the large number of contracts for oil due to the shortage of raw materials,” the analysts said, adding that the crushing plants failed to accumulate stocks, as it was before.
According to the experts, most of the oil processing plants buy sunflower and immediately send it for processing. Previously, processors had stocks for October-November, but now many companies do not have enough to cover even the current month. This leads to higher prices and fierce competition between plants trying to buy the required amount of sunflower.
Pusk predicts that given the current trends and seasonality in the market, we can expect new record prices that may exceed the historical highs recorded in 2020.
