Sunflower Seed Prices Plummet Amid Ukraine Crisis

Ukrainian crushers have reduced prices for new-crop sunflower seeds to UAH 19,000-20,000/t including VAT, or $370-390/t excluding VAT, due to the shutdown of crushing plants and export terminals in southern Ukraine. The uncertainty over Black Sea port operations has also contributed to this decrease.

Old-crop sunflower seed crushing and purchasing have virtually stopped in Ukraine, with only smaller plants buying sunflower seeds for August delivery at lower prices. Bid prices for sunflower oil delivered to Danube ports remain at $1,320-1,335/t.

The abundance of cheap rapeseed is also putting pressure on the sunflower seed market. Crushers in central and western Ukraine are buying rapeseed at around UAH 20,000-21,500/t delivered to the plant and have secured crushing programs through late October-November.

Market participants do not expect another sharp decline in sunflower seed and rapeseed prices. Restrictions on grain and vegetable oil exports through Ukrainian and Russian Black Sea ports could support global prices and demand for Ukrainian products that can still be shipped to or via the EU.