Ukrainian sunflower prices rising due to lower harvest forecast - analysts

MOSCOW. Aug 6 (Interfax) - Prices for newly harvested sunflower in Ukraine are rising gradually on news about the condition of planted areas and further lowering of the oilseed production forecast in Ukraine in 2024, Ukrainian media reported, quoting the APK-Inform analytical agency.

The preliminary price for sunflower from the 2024 harvest is about UAH 18,500-20,000/tonne CPT. Crushing plants are not rushing to unveil potential procurement prices, given the uncertainty of the situation, but they envisage that in the near future prices could rise to UAH 20,000-22,000/t CPT or even to UAH 23,000/t CPT.

"Among the reasons for the possible increase are the expectations of lower harvest compared to last year, subdued oilseed sales and fierce competition in the domestic market for quality raw materials. At the same time, such price support factors may remain relevant during the mass sunflower harvesting period, as farmers are planning to wait for more attractive prices, given the current situation," the analysts said.

They said the sunflower harvesting campaign was gradually getting underway in more and more regions. So far, the harvesting is mainly focused on early varieties, which mostly suffered from the heat, but the supply of the new crop is almost absent, both in terms of physical volumes and forward transactions, APK-Inform said.

The Ukrainian Grain Association in July lowered its forecast for Ukraine's sunflower harvest in 2024 to 12.8 million tonnes from the previously expected 13.7 million tonnes. The 2023 harvest was 14.2 million tonnes.