Sunflower prices in Ukraine fell by UAH 1,000/t against the background of a decrease in stock market quotations for soybean and palm oil

Against the backdrop of a sharp drop in quotations for rapeseed, canola, soybean and palm oil, processors in Ukraine reduced their purchase prices for sunflower, expecting a collapse in sunflower oil prices.

Ignoring the forecast of a reduced harvest and increasing US soybean processing, December soybean oil futures on the Chicago Stock Exchange fell 7.8% in three sessions to $930/t (-2.8% for the month), in two weeks having lost 14.9% growth in early November.

December palm oil futures on Bursa Malaysia yesterday fell 3.2% to 4,772 ringgit/t or $1,066/t (-6.6% three-session, -6.9% two-week) on forecasts decrease in exports in November. Local analysts expect palm oil prices to remain at RM4,800-5,000/t in the near term due to production cuts and stronger export demand.

In Ukraine, purchase prices for sunflower with 50% oil content this week fell by UAH 1,000-1,300/t to UAH 26,000-26,500/t with delivery to the factory, as processors expect a sharp drop in sunflower oil prices following soybean and palm oil prices.

Export demand prices for sunflower oil in Ukrainian ports fell by $5-10/t to $1,140-1,155/t from Monday, but traders did not lower offer prices, given the shortage of sunflower and oil supplies.

According to Trading Economics, the average price of sunflower oil for delivery to buyers increased by $5/t to $1,335/t from Monday.

A 6.3% fall in rapeseed prices in the EU in three days will increase pressure on rapeseed and sunflower oil prices, but rising oil prices and possible disruptions in sunflower oil supplies from Ukraine and the Russian Federation, caused by intercontinental missile attacks on Ukraine by the Russian Federation and the strengthening retaliation, will keep the premium for sunflower oil high (compared to soybean and palm oil).