Sunflower prices in Ukraine remain under pressure from falling demand

The strong increase in prices for soybeans and processed products, due to the projected decrease in the soybean harvest in South America, supported the price of sunflower oil. However, in Ukraine, purchase prices for sunflower seeds remained almost unchanged due to reduced demand from processors.

Since the beginning of the week, against the background of the strengthening of the hryvnia exchange rate, purchase prices for sunflower seeds have decreased to 20400-22000 UAH/Ton (7 720-778/ton with VAT) with delivery to the plant for oilseeds of 48-50%. Processors are in no hurry to raise prices, and some have stopped buying sunflower seeds altogether, as they expect lower prices for vegetable oils after rapid growth. Sunflower stocks among producers are quite large, and export demand for sunflower oil is insignificant.

Processors expect increased sales of sunflower seeds by producers, who will soon need funds for spring field work. Last year, purchase prices peaked at the end of February, and this year may occur earlier due to the high rate of soybean harvesting in South America.

Following the soybean and palm oil markets, Ukrainian sunflower oil rose in price to F 1,400 -1 1,420/ton FOB, but demand for it is decreasing due to the long weekend in China and active purchases of Argentine soybean oil by India.

March palm oil futures on the Malaysian stock exchange after reaching a record 5,700 ringgit/t or 1 1,362/t on Monday fell 5,592 ringgit/t or.1,336/t, but then the exchange closed until February 3 for the New Year weekend.

March soybean oil futures on the Chicago Stock Exchange earlier this week rose 1.8% to the highest level since May of 1 1,450/ton, but yesterday fell to вчора 1,438/ton, despite rising soybean prices and data on record soybean processing in the United States in December.

March soybean futures on the Chicago Stock Exchange have been rising for 7 consecutive sessions, and yesterday rose 0.9% to 5 565/ton, adding 9.5% of the price for the week.

According to the NOPA news agency, in December, soybean processing in the United States increased by 4% compared to November to a record 5.389 million, which is 3% higher than last year's figure and traders ' expectations.

Lower oil prices and increased supplies of new crop soybeans from South America will soon increase pressure on oilseed markets.