The government of Ukraine decided Memorandum to stop the growth of prices for sunflower oil

at the End of last week, the Ministry sent out to retailers and processors sunflower draft Memorandum on stabilization of the prices of bottled sunflower oil, to which comments can be submitted before March 15.

the draft document States that "the participants of the market of vegetable oil within the Memorandum agree not to increase prices of sunflower oil above the level that prevailed in the trade networks of March 1, 2021, and also undertake to ensure the uninterrupted supply to the domestic market of the product having high social importance".

the Government on his side promised not to change the existing regulation of exports and imports, to provide processors "favorable credit conditions," to provide legal advice on the development of the market and promote the development of a marketing information system in sunflower.

Measures to curb prices for sunflower oil were previously accepted in Russia, where in December of commercial enterprise and oil producers signed with the Ministry of agriculture and Ministry of industry and trade, the agreement on the limit price of oil.

This decision of the government is unlikely to stabilize the prices of sunflower oil on the background of the rise in world prices of all vegetable oils, but it will strengthen speculative demand to any export restrictions.

However, the market has self-lined balance because it is caused by rising prices, a sharp reduction in demand has led to a significant decline in the prices of vegetable oil in the world markets.

the May futures of palm oil on the stock exchange in Malaysia fell by 3.15% to 3897 ringgit/t or 9472 $/t, losing two days of 5.9%. On Monday, the market reacted to the decline in exports in the first half of March compared with the same period in February, and yesterday on increased production by 62%. Amid high prices for seasonal increase production producers of palm oil significantly increased the volume of proposals.

May futures for soybean oil on the stock exchange in Chicago yesterday fell 0.5% to 1213 $/t, losing two days of 1% of the price.

bid for Ukrainian sunflower oil this week fell from 1650-1670 $/t FOB to $1600/MT FOB, and sunflower meal with 315-325 $/t CPT to 285-290 $/t CPT, putting pressure on the purchase price of sunflower that from Friday's level 25500-26800 UAH/t dropped to 24200-25000 UAH/t with delivery to the plant.

increase the production of palm oil and soybeans from South America on the background of ASF outbreaks in China, which will reduce the demand for meal and cornmeal will continue to increase pressure on the prices of vegetable oils and sunflower.