Active export of vegetable oils from Ukraine contributes to the recovery of prices

The war of the Russian Federation against Ukraine has been going on for the eighth month, which has led to the death of hundreds of thousands of people and the destruction of the economy and infrastructure, especially in the east and south. But Ukraine continues to fight and win.

The oil and fat industry of Ukraine provides more than 20% of foreign exchange earnings, therefore the rapid reorientation of exports from closed ports to the western borders supported the work of enterprises and the country's economy.

According to the Institute of Agrarian Economics National Research Center, in 8 months of 2022, Ukraine exported various oils and fats for $3.652 billion, which is 11% less than the corresponding indicator of 2021, in particular sunflower oil - $3.361 billion or $422 million less. than in the same period last year. At the same time, exports to EU countries, in particular Poland, increased sharply.

The first step in the list of importers was occupied by Poland, which acquired 14.5% of domestic exports of the specified products in eight months of the current year. India, which has been the main buyer of Ukrainian oils and fats for the past six years, moved to the second place with a share of 11.7%. The following positions are occupied by Turkey - 9.8%, the Netherlands - 8.1%, Italy - 5.4%, Bulgaria - 4.9%, Spain - 4.7%, Romania - 4.5%. Collectively, these countries purchased 64% of the export of Ukrainian vegetable oils and fats.

The restoration of exports through the Black Sea ports allowed for a sharp increase in product supplies, which is why it is so important to continue the work of the "grain corridors".

The export of sunflower oil for October 1-5 amounted to 47,051 thousand tons, and in general in 2022/23 MR reached 554,201 thousand tons, which gives hope to farmers to receive a good price for their products.

Last week, the purchase prices of sunflower oil in Ukraine remained stable at the level of $950-1050/t FCA, but in the near future they will be supported by the increase in the prices of oil and palm oil.

December Brent oil futures for the week rose by 15% to $98/barrel, and November WTI oil futures rose by 16% to $92.5/barrel amid OPEC+'s decision to cut production by 2 million barrels/day, which supports quotations of vegetable oils.

Malaysian palm oil futures rose 8.3% for the week to a two-week high of 3,701 ringgit/t or $798/t and continued to gain, remaining the cheapest in the oil market.

December soybean oil futures in Chicago for the week rose by 8.3% to $1,467/t, recovering to the level of the previous month.