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Ukraine's Ministry of Economy has set the minimum allowable export price for sunflower oil on a CPT basis at $1,350 per tonne, a level that exceeds current market offers by roughly $225, according to industry participants and analysts at UkrAgroConsult.
The threshold was established under Economy Ministry Order No. 1369, dated September 10, and came into force on September 11. Traders and representatives of processing companies have pointed out that the prescribed level does not correspond to prevailing conditions in the physical market.
Market participants report that Ukrainian sunflower oil is being offered at approximately $1,360 per tonne on a CIF Turkey basis, while FOB quotations at six key Black Sea ports stand at $1,385–$1,390 per tonne. Russian sunflower oil, by comparison, is trading at $1,306–$1,310 per tonne, with certain deals for shipments to China reported at around $1,250 per tonne.
The minimum price set on an FAS basis has also drawn scrutiny from traders, having been fixed at $873 per tonne. Industry players are urging the authorities to revisit the calculation methodology and to clarify which transactions and quotations were used as the reference for determining the minimum thresholds.
The gap between the official floor and prevailing market levels is already creating logistical and commercial challenges. According to market participants, contracts, product, and buyers remain available, but concluded transaction prices may fall below the minimum level set by the government, complicating the arrangement of shipments.
Source: UkrAgroConsult