In July, sunflower oil prices may drop by another $20/ton

The participants of the Sevilla VegOils&Meals Trade conference, which took place on June 14, expressed a common opinion that sunflower oil prices will remain stable in the short term, ASAP Agri reports on its resource.

 

At the same time, Sunstone Brokers expert S. Repetsky predicts that in July the prices of crude sunflower oil may fall by $20/t to $960-980/t CIF Mersin and $1000-1025/t CIF India, and further price trends will depend on the weather conditions and productivity prospects.

 

"Already at the beginning of August, sunflower oil prices may rise by $30/t in anticipation of the new harvest, which causes some concern. Traders are already contracting oil of the new harvest, but the difference between the new and the old harvest does not change, which indicates significant stocks of sunflower of the old harvest and uncertain prospects of the sales market," said S. Repetsky.

 

At the tender for the purchase of vegetable oils in Egypt on June 13, 152,000 tons of sunflower oil of the old harvest were offered, which confirms the significant volume of available offers. At the same time, Egypt contracted only 5 thousand tons of sunflower oil, as it has sufficient reserves. This forced sellers to lower prices to boost sales. However, not all sellers are willing to lower prices because they have very low processing margins.

 

According to Trading Economics, during the week the average price of sunflower oil delivered to customers fell by 2.2% to $913/t (+1.4% for the month).