Power supply disruptions in southern Ukraine have led to the shutdown of several processing plants, while reports of Bulgaria purchasing sunflower seeds from Argentina have intensified pressure on Black Sea sunflower oil prices, ProAgro Group reports.

According to GrainTrade, a weekly decline of $10 in sunflower oil prices delivered to India — down to $1,400 per tonne CIF Mumbai — along with a $10–30 drop in Russian sunflower oil offers to $1,280 per tonne FOB, resulted in a decrease in demand prices for sunflower oil in Ukraine by $10, to $1,270–1,280 per tonne delivered to ports.

Prices are being pressured primarily by increased sunflower supply from Argentina to the Indian market and to Bulgaria, which plans to process Argentine sunflower seeds, potentially boosting sunflower oil supplies to the EU.

As a result, after reaching a seasonal peak last week, sunflower seed prices in Ukraine have fallen by UAH 500 to UAH 29,500–30,500 per tonne, or $600–620 per tonne excluding VAT (for 50% oil content), delivered to processing plants. The decline followed heavy contracting by processors at previously high prices, while some plants halted procurement and acceptance due to electricity shortages, reducing competition.

It is worth noting that a year ago sunflower prices reached seasonal highs of UAH 27,500–28,500 per tonne, after which they began to decline from late February.

According to analysts’ forecasts, prices for vegetable oils are expected to decline again in early March, along with a seasonal increase in oilseed supply, which may lead to further pressure on sunflower prices.

As previously reported, Lunar New Year celebrations in China and other Asian countries temporarily reduced business activity in the global vegetable oil market. Demand in the region weakened, and some trading was suspended, although prices remained relatively stable in mid-February.