Processors are trying to reduce sunflower prices, but they are supported by the rising price of sunflower oil

Last week, sunflower prices in Ukraine rose to 25,500-26,200 hryvnias/t with delivery to the factory against the background of limited supply and the need for factories to fulfill oil supply contracts.

From Monday, processors tried to lower prices to 24,500-25,000 hryvnias/ton following the drop in prices for vegetable oils, caused by an 8% drop in oil prices for the week. But the lower-than-expected harvest is forcing processors to keep prices high, especially when buying large lots.

As of October 18, 9.3 million tons of sunflower were threshed from 4.5 million hectares or 91% of the area in Ukraine with a yield of 2.07 tons/ha, so the harvest forecast was reduced to 10-10.5 million tons, although the USDA estimates it in 12.5 million tons.

Rising sunflower oil prices are keeping sunflower prices high and helping to boost refining margins.

During the week, prices for sunflower oil rose by another $20-30/t to $1,050-1,060/t, and for meal - by $5/t to $220-225/t with delivery to Black Sea ports.

Sunflower oil rose sharply after the tender in Egypt, where the purchase price reached $1,185/t C&F amid strong palm oil prices in Malaysia.

December palm oil futures on the Malaysian exchange traded at a two-week high of 4,300 ringgit/t, or $1,000/t, amid buoyant demand.

December soybean oil futures on the Chicago Stock Exchange rose 1.4% to $934/t yesterday (+1.1% for the week, +1.4% for the month), but remain quite cheap compared to other vegetable oils because they are under pressure from increased soybean supply in the US and improved planting conditions in Brazil.

December Brent crude futures for the week lost the speculative growth caused by Israel's conflict with Iran, and fell 4.4% to $74.2/barrel, just 1.3% higher than last month.

India remains the main market that can support oil prices after the decline in demand from China. Therefore, if it continues to reduce imports in October, oil quotations will turn downwards.