Sunflower prices in Ukraine have increased slightly, but may resume their decline in the near future

The trade war between the US and China is lowering oil prices, which is putting pressure on vegetable oil quotes, which will soon be reflected in the prices of sunflower oil and sunflowers in Ukraine.

During the week, purchase prices for sunflower with 50% oil content remained at the level of 26,000-26,600 UAH/t with delivery to the plant, but processors are no longer paying extra for large batches against the backdrop of a downward trend in world oil prices.

Export demand prices for Ukrainian sunflower oil with delivery to Black Sea ports remain at $1,120-1,135/t, and with delivery to EU countries have increased by $15-20/t to $1,180-1,200/t due to the strengthening of the euro against the dollar. At the same time, buyers in the EU have started to lower prices in euros and reduced purchases in anticipation of a drop in prices for oils and biodiesel.

Export demand prices for sunflower meal with delivery to Black Sea ports increased by $5/t to $220-225/t over the week, following corn prices.

Palm oil futures on the Bursa exchange in Malaysia have fallen 10% to $931/t since the beginning of April amid falling oil prices and a seasonal increase in palm oil production, which will sharply increase supplies to India.

According to experts from the brokerage company Sunstone Brokers (Switzerland), sunflower stocks in the main producing countries of the Black Sea region are at last year's level, but the price difference between sunflower and other oils is much greater, and demand for it is lower. At the end of March, Argentine sunflower oil was offered in India at $1,175/t, and Black Sea oil in Turkey was $20/t more expensive. But demand from Turkey will soon decrease, since the quota for sunflower oil and sunflower imports with a reduced duty in the country is valid until April 30.

In Kazakhstan, sunflower stocks as of April 1 amounted to 933 thousand tons, which was 17% higher than the corresponding figure last year (795 thousand tons).

Ukrainian farmers should accelerate the sale of sunflower at current high prices, as the planned increase in sowing areas in Ukraine and the Russian Federation will soon lead to a decrease in forward prices for sunflower oil and increase pressure on spot prices for the old crop.