In June of this year, sunflower processing in Ukraine decreased and amounted to about 1 million tons, which is 11% less than in May. Although this is below expectations, it is still a fairly good result for the reporting month as a whole.
According to the results of September-June 2024/25 marketing year, approximately 10.5-10.6 million tons of sunflower oil were processed in Ukraine. This is 21% less than in the previous season. This figure is one of the lowest since the 2016/17 marketing year and the second lowest after the 2021/22 season (10.2 million tons).
Against the backdrop of increased sunflower oil exports, it is expected that in July, sunflower processing may increase to 1.1-1.2 million tons. However, overall for the 2024/25 season, processing of this oilseed crop is unlikely to exceed 12.5 million tons due to several reasons, such as low processing margins and competition in the market.
The new season may limit sunflower oil processing due to lower yields, high competition among processors and exporters, as well as falling prices for rapeseed oil in Europe, driven by falling oil prices. Nevertheless, the introduction of a 10% export duty on soybeans and rapeseed may enhance the attractiveness of processing in the future.
In June, sunflower processing in Ukraine decreased, but increases are possible in the following months, although total processing for the last season remains quite low due to a number of factors affecting price and competition in the sunflower oil market.