The cost of sunflower oil in Ukraine and European countries has significantly increased amid record heat and drought that have affected the continent this summer. Due to adverse weather conditions, sunflower yields in Ukraine have fallen to one of the lowest levels in the past five years, while oil production in Europe has dropped to a decade low.
This is reported by Finway
Impact of Drought on Sunflower Yields
The majority of sunflower crops in Ukraine are located in the southern regions, which have been most affected by the lack of rainfall. Experts estimate that this year’s harvest in Europe could be the worst in the last ten years, amounting to about 8.3 million tons. This has directly impacted prices: in French ports, the price of sunflower oil has reached its highest level since November 2022, while in the Ukrainian market, the price has risen to its maximum value in the last five months.
Global Market and Outlook
Ukraine and EU countries together account for nearly 40% of global sunflower production. As a result, the price increase in the region has led to a rise in the vegetable oil price index to its highest point since July 2022. Experts note that a slight decrease in prices may occur after the harvest begins and the volume of product supplies to the market increases.
“Prices of sunflower oil are rising, as Ukraine and the EU together account for about 40% of global sunflower production. The vegetable oil price index has reached its highest level since July 2022. Some relief may come with the progress of the harvest and increased supplies.”
Despite the challenging situation with sunflowers, summer rainfall in certain regions of Ukraine has positively affected corn yields, which analysts estimate could reach 31.3 million tons, of which 26 million tons will be exported.