Sunflower prices fall after the price of plant oil
Reduction in demand for vegetable oil from major importers China and India continues to put pressure on the markets.
Palm oil fell to a minimum of 2 years trading at 582,5 $/ton, while futures on palm oil in Chicago dropped to its lowest level in 2.5 years – 680 $/t
the Drop in prices of soybean and palm oil were brought and the price of Ukrainian sunflower oil, which over the month decreased from 750-760 $/t until 720-725 $/t FOB Black sea. The demand for sunflower oil is almost nonexistent, and the black sea terminals filled with large amounts of sunflower oil.
Reduced export demand for sunflower oil has fallen off the procurement price of sunflower in Ukraine, who this week lost 500-800 UAH/t, and now processors are declared at the level of 11500-12000 UAH/t with delivery to the plant and 11000-11500 UAH/MT on basis FCA-farm.
for the increase in the harvest of sunflower in Ukraine and Russia in the new season also puts pressure on the price of sunflower oil of the new harvest.
As of 08 June, the sunflower sown 5.7 million hectares (103% from the plan), and in Russia - 7.8 mln ha (103%) against 7.4 million hectares at the same date last year. But experts say that the actual acreage under sunflower will total 6.5 million hectares in Ukraine and 8 million hectares in Russia. Weather contributes to the development of the sunflower, so there is a prospect to obtain high yields, which will lead to increased competition for market.