Sunflower prices recover after record fall

In Ukraine, with 98,5% of the area harvested 14.1 million tonnes of sunflower seed yield of 2.45 t/ha (2,24 t/ha in 2018).

Experts USDA in the November report estimated the world production of sunflower in 51,227 million tons that corresponds to level of last year. In addition, for Ukraine's production forecast was reduced 0.5 million tons to 14.5 million tons, for Argentina – on 0,325 million tonnes to 3.5 million tonnes, while for Russia it increased by 0.29 million tons to 13 million tons and the EU – 0,287 million tonnes to 9.8 million tonnes.

In Russia as of 11 November from 7.9 million hectares, or 93,2% of the area harvested 14.6 million tons of sunflower seeds with a yield of 1.84 t/ha, whereas on this date in 2018 was collected 11.7 million tons of sunflower seeds with a yield of 1.58 t/ha.

the Increase in the harvest of sunflower in Russia will lead to the revision of the world balance in a December report USDA and increase the volume of world production of sunflower oil.

Record harvest of sunflower in Ukraine and Russia collapsed the purchase price of sunflower to low levels, but they are gradually being restored to support the market of sunflower oil, which grows after the prices of palm oil due to reduced production and increased demand from the biodiesel industry.

domestic Prices for sunflower oil rose to 710-720 $/t FOB, but rising prices for soybean oil $700/MT FOB and palm to 630 $/t FOB gives them the potential to further improve, because usually it's the difference between sunflower and palm oil is 150-200 $/t

on the other hand, buyers are still not ready for the new prices. So, the bid prices of Ukrainian sunflower oil with delivery in India are 770-775 $/MT CIF, while the buyers offer for her 740-745 $/t CIF.

In Ukraine, purchasing prices for sunflower is gradually growing, although they limit the strengthening of the hryvnia to 24.5 UAH/$. Processors offer sunflower 9000-9800 UAH/t with delivery to the plant and 8500-8700 UAH/t on the French economy. Manufacturers keep the sale, so to attract volumes of processors to raise prices, the higher refining margin allows them to do so.