Ukrainian sunflower meal (SFM) export prices have increased at the country's deep-water ports of Pivdennyi/Odesa/Chornomorsk (POC) on higher demand from China after the Lunar New Year holidays.
Prices for granulated and non-granulated meal rose this week, having fallen from the end of January. Limited supply of SFM in Ukraine because of a slower sunflower seed (SFS) crushing pace also supported SFM prices.
Interest in Ukrainian SFM from Chinese buyers comes after an increase in soybean meal (SBM) prices in China. At least some market participants there expect tighter soybean supply to China in February-March, which would result in lower SBM production. Concerns over trade tensions between the US and China also supported SBM prices.
Meanwhile, China's demand for Ukrainian SFM could be short-lived, according to market participants. China's domestic SBM prices weakened after the US Department of Agriculture on Tuesday kept Brazil's soybean output projection unchanged. This, with faster loadings in Brazil, could boost soybean supply in China from late March to early April.
Market participants also said it is likely that Ukrainian SFS processing plants could ramp up crushing activity thanks to higher prices for sunflower oil (SFO). This could result in higher supply of SFM in Ukraine, pressuring prices.
