Despite the decline in prices for vegetable oils, the sunflower continues to rise

Despite the decline in export demand prices for sunflower oil purchase prices for sunflower seeds in Ukraine continue to grow.

With the beginning of the year, refiners have begun active struggle for the party of the sunflower, resulting in prices for the week increased by 100-150 UAH/t to 10500-10800 UAH/t with delivery to the plant while experts were expecting prices to fall to 10400-10700 UAH/t after the fall of quotations of sunflower oil for 15-20 $/t

Quotes Malaysian palm oil reached its highest level 779 $/t and was in recent months, the main driver of growth of vegetable oil markets, have now become a factor of pressure on prices.

Last week, the March futures for palm oil in Malaysia have lost 10.4%, and yesterday they dropped by 0.5% to 2887 Ringgits/t or 709,4 $/t for fear of lower export demand from major importing countries.

According to the SGS inspector during Jan 1-20 Malaysia compared to the corresponding period in December increased palm oil production by 8.3% and reduced its exports by 8.6% to 765,8 thousand tons.

Futures soybean oil in Chicago also resumed its decline and fell by 1.4% to 731,2 $/t at the beginning of the harvest of soybeans in Brazil and expectations for a record harvest.

Under pressure from falling markets, palm and soybean oil and significant reserves of sunflower oil in the Ukrainian ports of demand prices for sunflower oil in Ukraine decreased by 5-10 $/t to 755-770 $/t for deliveries in February-March.