Purchase prices for new crop sunseeds lower than in the beginning of last season

Ukraine has started harvesting sunflower of a new crop already harvested 10 thousand hectares to 5.8 million hectares and produced 15 thousand tons with an average yield of 1.44 t/ha.

most of the factories for the production of sunflower oil has announced the beginning of reception of sunflower of a new crop and put the purchase price at the level of the 9100-10300грн/t depending on the delivery time. Level purchase prices by 7-10% lower compared to purchase prices at the end of August last year, but the main reason for the drop in purchasing prices was the strengthening of the hryvnia to the level to 25.12/25,15 UAH/USD, compared to 27.7/27,8 UAH/USD in the past year. Processors offer farmers a price level equivalent 380-410$/t with delivery to the factory with payment in UAH at the exchange rate at the time of delivery, as well as a higher price is offered for fast delivery by 1 September.

the Forecast of sunflower crop in Ukraine remains at the level of 15 mln tons and the results of the harvest in the course of collecting will significantly affect the dynamics of prices in the coming months. Based on the drop in purchasing prices for sunflower oil, the pressure on the purchase prices of sunflower will grow as the quotes on the sunflower oil for October November lower than in August and September.

Now there remain quite high prices for Ukrainian sunflower oil from the new harvest, despite the fact that substantial supply reduction of this product in season 2019/20 are expected. Production of sunflower oil in the new season is estimated at almost last year's level – about 6.4 million.

As of August 21 the demand price in the export market of sunflower oil are usually at the level of USD 720-730/MT FOB (delivery in September) and in the range of 710-715 USD/t FOB (delivery in October).

Recall, a year earlier to the same date of bid prices in the export market of this product was USD 686-700 / MT FOB.

the experts say that the season-2018/19 was unfavorable in terms of price for the market of sunflower oil in General. So, in November 2018, the demand price at the Ukrainian product has broken more than 10-year low, amounting to USD 620-635/MT FOB, and was kept for about 3 months.