Against the background of high world prices, Ukraine accelerates the export of sunflower oil
During September and October 2020 Ukraine increased in comparison with the same period 2019/20 MG sunflower oil exports by 5% from 793 to 830 thousand tons thanks to the increase of the world prices for sunflower oil in the last 3 months by 40-50%. Nearly 35% of this volume was shipped to India, 25% in the EU and 23% in China.
According to analysts, in 2020/21 MG Ukraine will reduce exports of sunflower oil in comparison with the previous season by 13% from 6.63 to 5.76 million tons due to reduced harvest and processing volumes of sunflower.
As of November 16, Ukraine with 99% of the area harvested 12.9 million tons of sunflower seeds in the forecast 13-14,5 million tons of yield Reduction of sunflower in Ukraine and Russia led to higher prices for sunflower oil, which is more expensive after palm and soybean oil.
in the last three months the leader of growth of prices first up was palm oil, which has risen from 600 $/t 800 $/t on the background of increased exports, due to the lower prices for palm oil.
Then, after forecasts of a reduction in the production price of sunflower oil increased from 780-800 $/ton to a record 1070-1120 $/t FOB.
currently, the fastest rising prices for soybean oil. On the stock exchange in the United States, they reached the highest since the end of the 2016 level 826-830 $/t, while prices for Argentine soybean oil for delivery in November-December rose to 950-960 $/t through drought conditions during the planting of the new crop.
as a Result, the rise in prices of vegetable oils premiums for sunflower oil relative to soybean has returned to its usual 100-120 $/ton, and is relatively palm – up to 200-250 $/t a decrease in the premium due to higher prices for soybean and palm oil activates the purchases of Ukrainian sunflower oil by India, which recently restrained the purchase through the inflated price proposals.
Tomorrow the Egyptian GASC tenders for the purchase of 30 thousand tons of soybean and 10 thousand tons of sunflower oil with delivery 10-30 January, as well as tender for purchase on the domestic market 3 thousand tons of soy and 2 thousand tons of sunflower oil with delivery Jan 1-20, which will demonstrate an acceptable to importers in the level of prices for vegetable oil continued to rise.
In Ukraine, the deficit of the sunflower has forced refiners to raise procurement prices to 615-640 $/t or 17300-18000 UAH/t with delivery to the plant, which at current prices for sunflower oil makes the refining margin was zero or negative. But processors are hoping for further growth of the world prices for oil. The strengthening of the hryvnia against the dollar is holding back the growth of purchasing prices for sunflower oil.
