Sunflower prices rise after the price of oil
Last week, export prices for sunflower oil of Ukrainian and Russian production increased by 20 $/t to its highest since January 2017 level 760-770 $/MT on the basis FOB – Black sea. Experts attribute this rise in prices of other vegetable oils, such as soy and palm.
However, it is unknown whether the price of sunflower oil to stay at such a high level because the largest exporters of this product in Ukraine and Russia, whose share in the world market of sunflower oil is 75-80%, the second consecutive season, is expected record harvest of sunflower. The USDA predicts that Russia will harvest of 11.5 million tons of sunflower, and Ukraine – 14.5 million tonnes, down from 14.2 million tons in 2016
the Purchase price of sunflower seed in Ukraine has increased from declarative 9500-9800 UAH/t to 9900-10700 UAH/t with delivery to the plant. With the beginning of the harvest, processors will increase prices in order to attract the volumes of raw materials required for the production of sunflower oil contracted at high prices.
the Collection of U.S. soybean and the planting season in South America may lower soybean quotations in September – October. This will affect the cost of soy and sunflower oil and, consequently, on the price of seeds.