Mintec has heard from Sunflower market participants that Ukraine is considering export quotas for Sunflower seed and Oil along with a licence-based export system as the country aims to strengthen its domestic food supply chain. Details about how this system would work in practice are still being uncovered but Mintec understands the system would likely be complex and limit the amount of sunflower oil and seed that could be exported for the current season. Several sources based in Ukraine mentioned that the quota could start from 1 May 2021.
The developments have come as a surprise to many market players as some feel it is against Ukraine’s interest to tamper with such an important part of the country’s industry. Market sources said that exact details are to be further discussed on Monday. The market, however, has already reacted as Mintec received price indications at $1,565/mt and $1,570/mt and offers at 1,570/mt and $1,580/mt during the morning of Friday 16 April. The Mintec Benchmark Price for Sunflower Oil FOB Black Sea was last assessed at $1,524.50/mt on Friday 9 April. The next assessment for this Mintec Benchmark Price is on Friday 16 April at 16:00.
The Ukrainian Ministry of Economic Development and Trade was unavailable to comment.
Mintec will continue to update this story as this it develops.