Slowing exports led to the reset terminal of sunflower oil
Delay the shipment of oil to China and Asia, as well as strict quarantines for ships has led to the fact that the Ukrainian port terminals of vegetable oils loaded almost 100%, which prevents the shipment of finished products processing enterprises.
the company RISOIL announced that the intake of oil was not stopped, and even increased in 2.5 times the stated capacity of the tank truck. Although traders see problems with the freight of ships and putting them under navantazhennya. However, the critical situation is not considered, because a competent logistics company redistributes the flow of goods between the two terminals in the Black sea and the southern port.
management RISOIL notes that the situation, when customers hold loads, repeated annually. Now with a new Vraja goes Argentina, so all hold the load in expectations of changes in prices on oil.
the company Allseedsзазначили that for the last 2-3 days of their terminals shipped two vessels of oil with a volume of 60 thousand tons, so now take 3-4 thousand tons of oil per day. Terminals that have high power and efficiency, get long-term contracts for transshipment.
According to the commercial Director of the company "Pology oil extraction plant" V. Loichenko, now in the Ukrainian port terminals is 570 thousand tons of oil, whereas normally this figure does not exceed 400 thousand tons
Buyers are in no hurry to ship oil in anticipation of further price reduction. They also hope to reduce the price of freight.
as a result, the amount of processing of oilseeds in Ukraine are reduced. Small refiners who do not have contracts to sell at high prices, already stopped, and large suffer from a shortage of raw materials because they could not afford to buy sunflower seeds at a high price.
If the December oil rose by 20% in January, with the beginning of the spread of the virus Covid -19, the price dropped to the initial level. Still hoping that this fall will be temporary as demand reduction in foreign markets. However, the prices of soy and sunflower oil since February, fell by 15%. If in January the SPOT price of oil on FOB Chernomorsk amounted to 820 $/t, now it is 660 $/t
According to estimates of the Grain Trade, the price of domestic sunflower oil is dropping due to lack of demand, and a significant port stocks don't allow you to buy a sunflower grown in the price. Lower prices for Argentine soybean oil enhances competition in the Indian market, where Ukrainian sunflower oil is offered at 725-735 $/t CIF, and Argentine soy – for 655 $/t CIF.
According to FAO, the price index of vegetable oil in March fell by 12% due to lower prices for palm oil and the uncertainty of world demand for vegetable oils.This trend was supported by soybean and rapeseed oil.
How long the terminal will remain congested with oil will depend on the prices. Although Ukraine is an influential participant of the market of vegetable oils, particularly sunflower, but not always can form the price trends.
