Ukrainian sunflower seeds prices may exceed historical maximum - analysts

MOSCOW. Oct 10 (Interfax) - A shortage on the Ukrainian sunflower seeds market may lead to a price rise, as Ukrainian enterprises do not have enough raw materials amid a decline in oilseed production since last year, Ukrainian media said, citing the Ukrainian Agri Council's Pusk analytical cooperative society.

"Sunflower seeds prices have topped 23,000 hryvni per tonne, and the average price may reach 24 000-24 500 hryvni per tonne by the end of October, according to the seasonal model. This is a result of a large number of oil contracts and a shortage of raw materials," the analysts said, adding that plants failed to make reserves this year, in contrast to the previous periods.

Most plants process sunflower seeds as soon as they are purchased, the experts said. Plants used to have reserves for October and November but now many of them have oilseeds in short supply even for the current month. The result is growing prices and a fierce rivalry between plants, which are trying to buying necessary amounts of sunflower seeds.

Given current market trends and seasonality, prices above the historical maximum of 2020 can be expected, Pusk said.