Sunflower seed prices in Ukraine are influenced by imbalances in the global vegetable oil market and may exhibit dynamics atypical for the spring-summer period, according to the analytical cooperative Pusk, created within the framework of the All-Ukrainian Agrarian Council.

"Fundamentally, the market is supported by production cuts in key regions. Sunflower harvests in Ukraine, the EU, and Russia were weaker than expected, limiting supply and creating the preconditions for further price strengthening. Against this backdrop, the domestic market is already demonstrating a fairly strong price position: conditional purchase prices for sunflower seeds have exceeded UAH 30,000 per tonne, a high level for this period of the season," the analysts noted.

According to experts, the market is currently experiencing a temporary loss of the premium between sunflower oil and soybean oil. If soybean oil prices remain high, sunflower oil prices will follow suit, automatically supporting the price of the raw material. Analysts estimate the potential for sunflower oil price growth at a minimum of $150-200 per tonne, but this process could take several months.

Sunflower prices in Ukraine traditionally decline between April and June, but this isn't guaranteed this season. A slight drop in prices is possible in the short term, as factories are already approximately 60-70% supplied with raw materials, which could temporarily put downward pressure on prices. However, in the medium term, the market will retain potential for growth, according to Pusk.