Sunflower prices in Ukraine fall under the pressure of harvest
As at 21 September in Ukraine from 2.98 million hectares or 49% of the area harvested of 6.37 million tonnes of sunflower with a yield of 2.14 t/ha.
the Highest yield recorded in Khmelnytskyi region 3.1 t/ha, and the lowest - in Zaporizhia region 1.4 t/ha In Central Ukraine the average yield is 10-15% higher than last year, in the Eastern regions, the crop suffered through drought conditions, and Western - due to excess moisture in July-August.
Consulting Agency UkrAgroConsult increased its forecast of oilseeds production in Ukraine in 2018 to 21.7 million tons, including sunflower - up to 15 million tonnes, soybeans – up to 4 million tonnes and rapeseed – to 2.7 million tons.
Forecast of production from the agriculture Ministry remains at the level of 13.5 million tonnes versus 12.2 million tonnes in 2017.
Increase the overall supply of sunflower on the background of falling export prices for sunflower oil up to 660-670 $/t FOB continues to put pressure on purchasing prices for sunflower seeds, which last week dropped at 11,000 UAH/t to 10200-10400 UAH/t with delivery to the plants of processors.
the Lack of storage tanks today is a major problem for producers, so part of the crop goes to the processors even though the reduction of the purchase price. Precipitation, which passed through the territory of Ukraine can suspend harvesting and may lead to lower yields in the Western regions.
Prices for soybean oil remain under pressure of trade disputes between the US and China, which has refused to negotiate and Monday imposed a mutual duty on the products $200 and $60 billion respectively. However, the increase in oil prices and the increase in domestic consumption of soybeans in the United States supported prices. Soybeans in Chicago rose last week by 3% to 309,6 $/ton, and soybean oil increased by 4.1% to 626 $/t
Therefore, the prices for sunflower oil and the sunflower will depend on the direction of movement of the prices of soybeans and soybean oil in the U.S. market in the short term.