Approval limit exports of sunflower oil decreased speculative pressure on prices

Ukrainian market of sunflower oil over a week was in limbo because of the rumors about the possible introduction of quotas or restrictions when exporting. Finally yesterday the Ministry of economic development signed with the Association Ukroliyaprom addition to the Memorandum, which limit the volume of exports of sunflower oil to the end of the 2020/21 MG are defined at the level of 5.38 million tonnes, which is slightly inferior to the previous forecasts of exports in the range of 5.6-5.7 million tons, but because almost no impact on the prices of sunflower oil.

It will calm the market, however, will not lead to a reduction in the cost of finished products as raw materials to produce bought at high prices.

Prices for Ukrainian sunflower oil depending on the delivery dates are 1550-1575 $/t FOB and receive support from neighboring markets of soybean oil and soybean.

According to the state statistics service, as of April 1, the stocks of sunflower in Ukraine decreased compared to the corresponding period last year to 52% with 4,233 to 2,778 million tonnes, including storage in agro – with 1,947 to 1,377 million tons.

From the collected in 2020/21 MG 13 million tons of sunflower seeds will be produced nearly 6 million tons of sunflower oil, domestic consumption is estimated at 0.4-0.6 million tons.

within 7 months of the current season Ukraine exported of 3.52 million tons of sunflower oil, therefore, in accordance with the Memorandum can implement more of 1.86 million tonnes.

Yesterday on the stock exchange in Chicago may soybean futures rose nearly 2 % to 535 $/ton, and soy oil 0.4% to 1245 $/t

June futures of palm oil on the stock exchange in Malaysia yesterday fell to 3710 ringgit/t or 900 $/t, and the exchange, Dalian 0.1% to 1197 $/t

the increase in the number of cases coronavirus in India to 260 thousand people a day and the introduction of a 6-day lockdown in Delhi in the near future will increase the pressure on the prices of palm oil and sunflower oil.