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Prices for new-crop sunflower are continuing to form on Ukraine's domestic market, while the price situation in the sunflower oil segment added further pressure last week, according to APK-Inform.
During the week, purchase prices for oilseeds ranged mainly between UAH 19,500 and UAH 21,500 per ton on a CPT-plant basis. Many processing companies were still undergoing scheduled maintenance shutdowns, or were running rapeseed through their facilities while simultaneously contracting new-crop sunflower seeds.
'Overall, market sentiment remained subdued due to difficult export logistics,' the analysts noted. 'Market participants do not expect any changes in port operations in the near term, which will most likely lead to a significant decline in plant utilization in the new season. Physical supplies of new-crop oilseeds remained minimal and were mainly reported in the southern regions.'
In the export market, interest in sunflower seeds continued throughout the period, driven by limited domestic demand.
Neighboring countries, however, are already taking precautionary measures amid fears of a large influx of Ukrainian oilseeds. Moldova is reintroducing an import licensing regime for a two-month period, while Bulgaria plans to step up quality inspections on imported oilseeds. At the same time, Turkey is cutting its import duty on sunflower seeds in anticipation of potential disruptions to Black Sea oil supplies.
Source: APK-Inform