Low yield supports the price of rapeseed and sunflower

a Low yield of sunflower in the southern regions led to a rise in prices for sunflower seeds and sunflower oil, which were at a high level to support the markets for soy and palm oil.

expectations for a record harvest of sunflower in Ukraine, due to the increase in acreage, did not materialize because of the drought in the southern and Central regions, with the result that the harvest will be lower than last year. The soil moisture reserves in some areas, especially South, for a few months was at 5-year low. Using a low yield forecast gross yield is reduced from 15.5-16.5 to 14-14,5 million tons According to the first data collection in the South of Ukraine the yield is 1 t/ha and oil content 40-42%.

the Purchase price of the oilseed in Ukraine remain high, the seasonal decline in prices is not expected because the market supports gradual rise in price of vegetable oils.

Futures soybean oil on the stock exchange in the U.S. for the week rose by 4,4% to 731 $/t on the back of lower forecast soybean crop, although it is still 12-15% higher than last year, even in the case of a slight decline in yields.

Futures on palm oil exchange in Malaysia on Friday rose 2.1% to 2738 Ringgits/t or 657,7 $/t

Sunflower oil in Ukraine for the week rose by $60-70/MT to 830-840 $/t FOB due to the lower forecasts of sunflower crop and the need for processors to execute contracts for October deliveries of oil on the background of containment sales by manufacturers in anticipation of rising prices.

the Purchase price of sunflower seed delivered to the plant for the week increased by 200-300 UAH/t to 11000-11200 UAH/t, but the supply is low, since the collection has just begun.

After lowering its forecast of rapeseed production from 3.5 to 2.5 million tonnes of the seasonal decline in prices does not occur, and they remain at the level of 13800-14000 UAH/t with delivery to the port. Some traders have fulfilled the export contracts, so close procurement programme. Reducing the number of buyers will negatively affect the purchase price of rapeseed in the near future.

Data collection U.S. soybean and canola in Canada, the harvest will exceed last year's, putting pressure on world prices. Speculative growth of prices on the background of weather conditions will soon be stopped as the fundamental factors of the increase in world production of oilseeds. In addition, due to the sharp rise in price of vegetable oils, the volume of consumption will gradually be reduced.

harvest of the oilseed to China and India, which is their major importers, and projected increased production of soybeans and rapeseed will increase seasonal pressure on prices of vegetable oils in September.