Arrivals of the new crop lowers prices on sunflower

Dry weather accelerates ripening and harvest of sunflower in Ukraine.

As of September 9, with 16.5% of the area harvested 2 million tons of sunflower with a yield of 2.02 t/ha, whereas on this date in 2018 was threshed 21% of the area, and the yield amounted to 2.01 t/ha.

a Significant increase in acreage under sunflower this season on the background yield is almost similar to the previous year, will allow to collect a rich harvest.

the Increase in the supply of sunflower of a new crop leads to a decrease in purchase prices by processors who are trying to step up sales of sunflower oil in the market, which decreases.

Export prices for Ukrainian sunflower oil continue to decline. For deliveries in October-December, the bid price fell to 690-700 $/MT FOB, and bid prices to 715-725 $/t FOB. While shipments in the first quarter of 2020, the bid price fell to 685-695 $/t FOB.

Palm oil on Friday on the stock exchange in Malaysia rose by 1% to 527,8 $/t on the background of preliminary information Reuters that ending stocks of palm oil in Malaysia in August will be reduced by 7.1% to 2.22 million tons.

Futures soybean oil in Chicago after falling on Thursday by 2% on Friday, recovered to 630 $/t support the palm oil.

For the first batch of sunflower processors paid a high price to attract significant volumes early in the season. However, a sudden increase in supply after the start of the build dropped for a week the purchase price of 200-300 UAH/t. Now depending on the oil content and the region's refiners pay 9400-10000 UAH/t with delivery to the plant or 9000-9300 UAH/t on the French economy. For sunflower of good quality with oil content of 48% and above, they pay the prize of not less than 100 UAH/t. the Maximum price of 10 thousand UAH/t to pay for the oil content of 50%.