Prices on sunflowers growing in the vegetable oil markets
After the sudden collapse of the last two weeks the price of vegetable oil is gradually beginning to grow with the support of positive news: the lifting of the quarantine in China and the revival of economic activity of the country and constraints of port operations through the quarantine has been imposed in Argentina and Brazil, which are major world exporters.
In Ukraine, purchasing prices for sunflower received strong support from the growth of prices for sunflower oil and the sharp devaluation of the hryvnia caused panic due to the spread of Covid-19.
After the price of oil may futures on palm oil in Malaysia on Friday rose by 3.3% to 2288 Ringgits/t or 521,18 $/t, even though the data on the reduction of palm oil exports from the country for 20 days in March compared to the corresponding period of February at 20%. Additionally, they supported the term limits processing and export of soybean oil from Argentina through quarantine.
on Monday the quotations of palm oil remained at the level of 2289 Ringgits/t, but due to the devaluation of the local currency to the lowest since March, 2017 the level of the price in dollars, fell 1.1% to 515,5 $/t
oil Prices rose yesterday by 3-4% and crude oil futures Brent crude reached 27,8 $/barrel, which significantly supports the vegetable oil markets.
Futures soybean oil in Chicago yesterday rose by 1% to 577,6 $/t on the back of possible plant closures and ports in South America to quarantine.
Futures for soybean meal, which is the main export product of Argentina, yesterday in Chicago rose 3% to 369,8 $/t, while soybeans – by 3.5% to 324,45 $/t Over the week the US has increased exports of soybeans to 570,6 thousand tons, which is 33.6% less than the corresponding period last year. However, traders see a rise in shipments from the West coast to China and Taiwan.
With the support of the markets for palm and soybean oil, and increased demand bid prices of sunflower oil in Ukraine has risen to 650-660 $/MT FOB, and bid up to 640 $/t FOB for shipments in April-may.
the Government of Ukraine discusses the possibility of strengthening quarantine, but promises that the export-related enterprises to work without restrictions.
the Purchase price of sunflower from last week turned up and raised to 500-600 UAH/t to 10000-10600 UAH/t with delivery to the plant. But the producers are holding back sales due to the instability of the hryvnia, which has depreciated by 14%. They sell the grain in limited quantities because they do not wish to keep money in banks amid speculation about a possible default of Ukraine.