Sunflower prices in Ukraine began to rise following vegetable oil markets
Stock market quotations for palm and soybean oil have been rising for 5 consecutive sessions, which is strengthening the demand for cheap Ukrainian sunflower oil, the prices of which recently fell to $670-680/t with delivery to the port, but rose to $700/t in a few days and even higher
Against the backdrop of rising sunflower oil prices, processors immediately raised the demand price for sunflower by 500-700 UAH/t to 14,000-14,500 UAH/t with delivery to the plant. In addition, sunflower prices were supported by the increase in demand prices for deliveries to the EU by $20-30/t, as well as a slight increase in the movement of ships through the grain corridor during the last week.
At the same time, the premium for high-oleic sunflower oil is only $40/ton. This shows that European buyers have not yet returned to the market.
According to Spike Brokers analysts, the asking prices are now:
- on the sunflower
- 370-400 €/t DAP Italy (center),
- $340-350/t FOB Ukraine (Danube);
- on sunflower oil
- 740-760 €/t DAP Italy,
- $730-740/t FOB Ukraine (Danube),
- $765-775/t CIF Romania (port).
The company's experts note the oversaturation of offers in the German market, where most factories are supplied with raw materials until October-November, as well as significant volumes of Australian canola purchased by French processors. All this may lead to a decrease in rapeseed imports to Europe compared to the previous year. And low prices for rapeseed and rapeseed oil will restrain a possible rise in sunflower prices.
According to Spike Brokers, the demand prices for oil are:
- on rapeseed
- $300-320/t DAP Ukraine (Danube) for oil content 42%,
- 420-425 €/t DAP Germany (port) for oil content 42%,
- 400-405 €/t DAP Germany for oil content 40%,
- 400-405 €/t CIF Romania (port) for oil content 43%;
- on non-GMO soy
- 420-440 €/t DAP Italy,
- 425-430 €/t DAP Hungary,
- 360-365 €/t DAP Serbia,
- $490-495/t FOB Ukraine (Danube).
The European soybean market is currently off-season. He expects a new crop and is under pressure from the supply of cheap Brazilian soybeans, so there is no significant change in quotations.
