Purchase prices for sunflower after a record 15500 UAH/t turned down

In Ukraine, purchasing prices for sunflower after reaching on Friday a record level 15000-15500 UAH/t with delivery to the plant yesterday turned down under pressure from the sharp fall in world oil prices and vegetable oil, and their decline may accelerate.

market Participants realized that the growth of prices for sunflower oil up to 1000-1050 $/t FOB did not reflect the real market, and was the result of a shortage of raw materials at the start of the harvest. The prize for the sunflower oil compared with soybean in the range of 170-200 $/ton reduced demand from buyers and limited further price increases.

Following the decline in oil prices on 5% of the quotations of palm oil in Malaysia, which for the previous week due to speculators rose 10% to 8-month high yesterday, fell by 2.4% to 3007 Ringgits/t or 729,85 $/t

Futures for soybean oil in the U.S. yesterday showed the biggest daily drop in the last 5 months, a decrease of 2.4% to 758,1 $/t and lost half of the growth last week.

Prices for Ukrainian sunflower oil on Friday began to sink under the pressure of increased offerings of seeds and oil of the new harvest, despite the rapid rise in prices of soybean and palm oil at the end of the week.

the price of palm oil dropped to 20-40 $/t to 960-990 $/t FOB, with most cheaper delivery late date.

As of September 17, in Ukraine, with 36% of the area, or 2.3 million hectares and produced 4.07 million tonnes of sunflower with an average yield of 1.77 t/ha, whereas a year ago it was 2.22 t/ha. as you move the cleaning to the North, the yield is 2-3 t/ha, which will allow to obtain the average yield at 2.2 t/ha and the gross harvest of sunflower seeds at the level of 14.5 million tons.

Experts "to Ukroliaprom" reduced evaluation of sunflower production in 2020/21 MG July from 16 million tonnes to 15 million tonnes.

the Purchase price of sunflower yesterday dropped to 300-400 UAH/t to 14000-14600 UAH/t or 495-515 $/t delivered to the plant on the background of increasing sales by manufacturers and the emergence of queues at the factories. An increase in supply this week will increase pressure on prices.

In Russia, which is the second after Ukraine, a global manufacturer of sunflower oil, also improving productivity. As of September 17, there with 17.6% of the area, or 1.5 million hectares harvested 2.6 million tons of sunflower seeds with the yield of 1.73 t/ha. However, the increase in yield as you move through the Central regions gives hope for the harvest at 13-14 million tons.