Following Saturday’s missile attack on the port of Pivdennyi, the vegetable oil transshipment terminal operated by Allseeds was damaged. Large-scale fires broke out at the facility, one employee was killed and two others were injured. Infrastructure was damaged, and thousands of tonnes of sunflower oil were lost, ProAgro Group reports.

Experts had previously warned that the terrorist state of russia would target port infrastructure as well as oil extraction plants in order to weaken Ukraine’s economic potential and drive up prices for russian grain and vegetable oil amid restrictions on Ukrainian exports.

Ukrainian processors sharply reduced purchase prices for sunflower seeds due to the suspension of sunflower oil and meal exports from Black Sea ports, as well as growing risks of further attacks on other oil extraction plants.

Yesterday, purchase prices for sunflower seeds fell by UAH 1,000–1,300 per tonne to UAH 27,000–27,500 per tonne, or USD 560–570 per tonne excluding VAT (with 50% oil content), delivered to the plant.

Processors currently hold relatively large sunflower seed stocks, but the shutdown of maritime exports will force a reorientation of exports toward the western border, as was the case in 2022, significantly increasing logistics costs.

Earlier, it was reported that escalation in the Black Sea poses a threat to global grain exports.

Source: GrainTrade