Prices for soybeans and sunflower seeds in Ukraine continue to grow

For the second year in the domestic market, prices for soybeans and sunflowers are growing rapidly during harvesting, although usually a seasonal increase in supply leads to lower prices.

This week, purchase prices for sunflower seeds increased by another 200-400 UAH/ton to 18400-19000 UAH/ton with delivery to the plant amid a shortage of offers, which, against the background of improved weather conditions, contributed to the activation of sellers.

Prices for sunflower oil receive support from the palm oil market and remain at the level of F 1260-1300/ton FOB.

Purchase prices for soybeans are also growing rapidly, as they remain the cheapest oilseed crop, and the volume of offers is quite low. During the week, exporters raised prices for soybeans with GMOs in ports by 1 10-20/ton to 5 530-540/ton or UAH 6200-16400/ton, as a result of which processors were forced to raise prices to UAH 16300-16500/ton with delivery to the plant.

Prices for non – GMO soybeans in ports increased by 1 10-20/ton to 6 630-640/ton or UAH 19200-19500/ton, while on the basis of DAP-border with Poland or Belarus they reach 6 650-660/ton.

Analysts expect lower prices for vegetable oils in the second half of the season due to increased supply and reduced biodiesel production.

According to the forecast of the consulting company LMC International, palm oil prices may fall from the level of паль 1,063/ton (and in August they reached a record $1,093/ton) to 9 956/ton against the background of increased production in Indonesia and Malaysia, although there will remain a shortage of Labor. 

Demand for edible soybean oil is gradually recovering from the pandemic, but its use in biofuels will decrease, especially in the United States.

Oil World experts predict that global biodiesel production this year will reach a record 47.9 million tons, which is still 0.6 million tons lower than previous forecasts. The decline in the production forecast is due to rising raw material prices and falling demand. For the United States, the forecast was lowered to 8.6 million tons (7.85 million tons in 2020), Brazil – to 5.9 (5.62) million tons, Indonesia – to 7.6 (7.35) million tons, Malaysia – to 0.93 (1.11) million tons.

It is worth noting that over the past year, prices for oil and basic vegetable oils have increased by more than 60%.