Sunflower prices in Ukraine fell below UAH 25,000/t at the end of the year

The sunflower market in Ukraine is expecting new factors to influence prices, as processors have lowered their purchase prices and farmers have stopped sales, causing some plants to stop operating.

 

During the week, sunflower prices decreased by another 200-500 UAH/t to 23,800-25,000 UAH/t against the backdrop of a drop in sunflower oil prices to $1,050-1,070/t with delivery in January to Black Sea ports.

 

According to Trading Economics, the average world price for sunflower oil delivered to customers fell by 0.5% to $1,255/t during the week (-4.2% per month).

 

The increase in offers of cheap sunflower oil from the Russian Federation is increasing pressure on the prices of Ukrainian oil. In addition, cheap soybean oil has collapsed the prices of palm oil, which was the driver of the growth of quotations in November.

 

In the Russian Federation, sunflower prices fell amid an increase in harvest forecasts from 15.5-16 to 16.6 million tons and an increase in the export duty on sunflower oil in January by 1.7 times to $160/ton, and the indicative price for oil (for calculating the duty) from $954.7 to $1,027/ton. According to local analysts, in December, export prices for Russian sunflower oil fell by 13% or $150/ton.

 

February palm oil futures on the Bursa exchange were trading at 4,500 ringgit/t or $1,015/t this week amid increased exports from Malaysia and reduced trading activity ahead of Christmas.

 

In January, palm oil quotes may increase after the increase in the export levy on crude palm oil (CPO) in Indonesia from 7.5% to 10% and the introduction of the E40 standard, which will reduce crude palm oil exports.

 

Soybean oil prices remain at minimum levels under pressure from forecasts of a good harvest in South America, which will restrain the growth of palm and sunflower oil prices until March-April, when the harvest results will be known, as well as the first decisions of the new US Administration on biofuels.