Limited Supply and High Seed Prices Fuel Continued Price Rise for Ukrainian Sunflower Oil
- 23-Apr-2025 6:15 PM
- Journalist: Yage Kwon
Sunflower oil prices in Ukraine experienced further growth during the first half of April 2025 extending the remarkable price increases from March. ChemAnalyst predicts sunflower oil prices will increase throughout the second half of April because supply-side constraints will mount while production expenses rise higher.
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Sunflower oil prices kept increasing during the first half of April 2025 following their robust growth in March.
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Sunflower seed shortages and suspended crushing operations created a major production and export decrease of sunflower oil.
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Ukraine's sunflower oil exports in marketing year 2024/25 decreased by 24%, marking the lowest levels since the 2016/17 marketing year.
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Higher seed costs combined with Ukrainian inflation raised production expenses to the extent that it both reduced profit margins and limited the amount of sunflower oil produced.
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Local demand stayed steady in Ukraine but supply restrictions prevented the country from achieving its domestic and foreign market needs.
The sunflower oil market in Ukraine experienced a strong price increase during March because supply had tightened while production costs became more expensive. Sunflower export volumes in the nation hit their lowest levels since the beginning of the 2016/17 marketing year. The industrial processing fell because numerous sunflower seed operations forced their plants into shutdowns because of a critical seed shortage. The combination of reduced harvest quantities together with farmer reservation about the market position of their stock led to increased seed prices which deflated crush profit margins beyond economic viability.
Illuminating price trends in sunflower oil received further backing from the rising inflation rates. In March Ukraine reported rising inflation that raised costs throughout the sunflower oil value chain. The financial pressures faced by processors led them to reduce their output levels as well as diminish the amount of sunflower oil available domestically. The region faced additional processing challenges because two major sunflower crush plants operated by EFKO had to close temporarily in Russian territory as the price pressures spread across the Black Sea processing sector.
In March 2025 Ukrainian sunflower oil demand stayed level yet unavailable refined oil prevented the sector from satisfying both national and international sunflower oil requirements. Although India acted as a prominent importer Ukraine struggled to expand its sunflower oil exports because of processing capacity restrictions. Eurozone demand experienced minor growth during this period although Ukraine’s inconsistent production prevented it from exploiting export opportunities effectively.
As April wears on, the Ukrainian sunflower oil industry remains plagued by substantial operating headwinds. Crushers are having trouble obtaining sufficient seed supply, and refining margins are at or below breakeven points as a result of steep price volatility. With no near-term solution to raw material shortages on the horizon and farmers stockpiling, the outlook remains constrictive. ChemAnalyst expects prices to continue their gains through April as supply shortfalls intensify and processors continue to be unable to increase output, keeping the sunflower oil market under strong upward pressure.