The shortage of supply and increase in demand raises prices on sunflower in Ukraine

Purchase price of sunflower in Ukraine from March 1 would have to decline by 6% after the change in the VAT rate from 20% to 14%, but they continued to grow after the rapid rise in price of sunflower oil, and has come close to 25000 UAH/t (rate of VAT at 14%).

the beginning of the week the purchase price of sunflower with delivery to the plant grew to 23000-23500 UAH/ton for oil 46% and 24300-24500 UAH/t oil 50%, almost the same price level February, when acted VAT rate of 20%. After reduction of the purchase price due to changes in VAT rates the manufacturer has stopped the sale, but later re-intensified after reaching the level of prices 24000 UAH/t and higher.

Limited offerings enable sellers to increase prices of Ukrainian sunflower oil in 1520-1530 $/t FOB, forcing buyers to raise prices demand to 1475-1480 $/t FOB. The market is supported by high prices for soy and palm oil, as well as to boost export.

According to Ministry of economy, Ukraine in February increased compared to January, the export of meal by 25.7% to 169 million $, and vegetable oils - 14.3% to 587 million $, which is 12.2% more than in February 2020. The volume of export of vegetable oils in India and the Netherlands increased, while China has reduced purchases.

the Rise in oil prices had endorsed quotes palm oil, which fell for three days in a row on the increase of production and a decline in exports in February.

the May futures of palm oil on the stock exchange in Malaysia yesterday rose 1% to 3678 ringgit/t or 908 $/t on the background of a slower-than-expected export and restore production. According to estimates, the Singapore Bank CGS-CIMB, palm oil stocks in Malaysia for a month will increase by 7.6 per cent at the end of February 1,425 million tonnes.

May futures for soybean oil on the Chicago CBOT yesterday rose 1.5% to a 7-year high 1109 $/t

Customers switch to buying the Argentine soybean oil, but the high volume of soybean in the United States in February and the active demand for soybean oil support soybean prices and the oil at a high level.

On the stock exchange in Dalian futures palm oil fell by 1.2% to 1138 $/ton, and soy remained at the level 1363 $/t FOB.