Sunflower in Ukraine becomes more expensive due to the devaluation of the hryvnia and the decline in production

for the 2017 Ukraine produced 5,212 million tonnes of crude sunoil, which is 17 per cent higher than in 2016 - said in DirectAdmin.

In December oil production decreased compared to November 2017 by 0.4% to 477 thousand tons, which is 4.5% lower than in December 2016.

lower sunflower crop in the current season, has forced the processors after the new year to intensify the purchase of raw materials.

Main factor in the growth of prices remains the devaluation of the hryvnia. During the week, purchasing prices for sunflower increased by 200-300 UAH/t and now make up 11600-11800 UAH/t for deliveries to the plant or 11300-11500 UAH/t on conditions of purchase of the house.

After the new year falling by 5% the prices of palm and soybean oil last week, prices began to rise. After them the price of sunflower oil increased by 5 $/t to 745-750 $/MT on conditions FOB ports of Ukraine.

the World price of sunflower oil remained under pressure for the production of sunflower and soybeans in South America, as well as reduction in the production and export of oil from Russia, which reduces competition and stimulates demand.

In Russia remained uncollected 15% of sunflower crops, so the production of sunflower oil will decrease by 8% to 4.25 million tons sunflower Crop in the current season amounted to 9.6 million tons.

Reduction of gross yield will lead to incomplete utilization of the processing plants, especially in the second half of the season. The rate of export of sunflower oil is also reduced, roughly to 1.92 million tonnes, down from 2.17 million tonnes last year.