Vegetable oil prices in Ukrainian ports rise by $40/t since start of week
At the beginning of the week, the price of sunflower oil on a DAP Pivdennyi port basis increased from $1,220 to $1,260 per ton — up by $40 in just a few days, Prime Grain Oil Director Yurii Sharapaiev told Latifundist.com.
“We started at $1,240 and today we are already at $1,260. The market is reacting quickly, and this is a direct response to the strikes on Ukrainian oil facilities,” he noted.
Sharapaiev explains that Russia's attacks on Ukrainian oil extraction and processing facilities are one of the main drivers behind the price increase. The attacks also remain a key factor destabilising the operation of oilseed processing and export infrastructure.
Additional pressure is being created by power outages, difficult weather conditions and unstable fleet operations. Tankers are often forced to remain idle longer than planned, disrupting shipment schedules.
“Even when there are no direct hits, shipments are proceeding worse: power cuts, air raid alerts, weather. Vessels do not always berth as scheduled and sometimes remain at Sulina for a long time. In fact, we are not working in a steady rhythm but in ‘bursts’,” the trader said.
According to Sharapaiev, in late December, Prime Grain Oil contracted significant volumes of sunflower oil, confirming that demand remains in place despite rising risks.
“In the 20s of December, we contracted about 70,000 tons of oil. So the market has not stopped — deals are being signed and there is demand, it’s just that everyone is operating in a heightened caution mode.”
Domestic processors have felt the increase in oil prices but are mainly selling volumes needed for financial reasons, Sharapaiev believes.
“Yes, everyone is looking at the six-port indicatives. But at the moment I do not see a major surge in sales from plants; processors are closely monitoring price dynamics and waiting for an upward correction to lock in procurement levels,” he added.
At the same time, there has been no sharp rise in sunflower seed prices so far, despite the increase in oil prices.
