Sunflower prices in Ukraine are gradually declining after having maintained high levels in recent weeks. Crushing plants are showing restrained purchasing activity, which is putting pressure on the market.

This was reported by the analytical department of the First Ukrainian Agricultural Cooperative (FUAC), established within the Ukrainian Agri Council (UAC).

“A significant supply of sunflower seeds has allowed processors to cover around 60–70% of their February needs. Purchasing activity by processors is gradually decreasing, and the willingness to pay premiums above indicative levels has virtually disappeared. While many buyers were still ready to negotiate and offer mark-ups at the beginning of last week, the market is now seeing the first attempts to put downward pressure on prices,” analysts noted.

In the short term, further price corrections are expected on the sunflower market.

“At peak moments, sunflower with 48% oil content was traded at UAH 29,500–29,700 per tonne for small lots. Currently, however, quotations are mostly in the range of UAH 28,800–29,000 per tonne. We are now observing a local price maximum, and in the short term prices may correct downward by UAH 500–700 per tonne,” FUAC analysts forecast.

At the same time, there are no grounds for a sharp market collapse.

“Sunflower supply remains limited, which forms a relatively strong price base. In the absence of significant negative factors in February–March, the market may again attempt to test levels of UAH 29,500–30,000 per tonne,” analysts believe.