Starting prices for new crop sunseeds yet exceed last year's

Due to the hot and dry weather of August in Ukraine sunflower harvesting will begin simultaneously in all regions that will dramatically increase the volume of proposals. However, starting prices for new crop sunseeds will exceed last year due to the high level of world prices for sunflower oil.

a reduction In harvest  from 3.2-3.5 to to 2.5-2.6 million tonnes and high purchasing prices of exporters on canola processors have reduced plans for reprocessing , so the earlier you start to buy and process the sunflower.

Initial purchase price of sunflower seed delivered to the plant is equivalent to 400-420 $/t in local currency at the exchange rate on the delivery date, which is today 10500-11500 UAH/t. For delivery until September 1, buyers offer a higher price. Level purchase prices by 10-12% over last year, primarily due to the fact that the dollar is 27.4 UAH/$, compared to 25.1 UAH/$ in August last year.

the Purchase price of sunflower delivery in October amount to 380 $/t or 10400 UAH/t, because the prices for the supply of sunflower oil in November-December significantly lower than in August.

As of August 20 bid on the supply of Ukrainian sunflower oil in September to reach 770-780 $/t FOB (a year ago they were 720-730 $/t FOB) in October-November – 750-760 $/t FOB.

the High price of soy and palm oil provide quotes sunflower, however, arrivals of new crop soybeans and sunflower and the seasonal increase in palm oil production in the autumn will increase the pressure on prices.

Experts Oil World has decreased compared to the previous forecast estimate of world production of sunflower in 2020/21 MG by 1.3 million tonnes to 56.14 million tons, up 0.6 million tons exceeds the level of last year. Due to adverse weather conditions, the production forecast for Russia was reduced to 14.6 million tons, Bulgaria – to 1.91 million tons, Romania – to 2.8 million tons.

Recall that in the August USDA report, the world production of sunflower was estimated at 55.8 million tons, compared with 55 million tonnes in 2019/20 Mr.

forecast For Ukraine the production of sunflower remains at the previous level of 16-16. 5 million tonnes, while the USDA experts expect it to increase to 17.5 million tons due to expanding acreage. However, dry weather in August significantly reduces the potential yield, therefore, data on sunflower harvest in the coming months will significantly affect the dynamics of prices.