Purchase prices for sunflowers have collapsed in Ukraine

Purchase prices for oil crops in Ukraine continue to fall against the background of harvesting and blockade of Black Sea ports, as well as ban on sunflower and rapeseed imports to 5 neighboring EU countries.

Poland insists on extending the ban on grain imports from Ukraine after September 15 and says it will extend it unilaterally, even if the European Commission cancels the current restrictions.

Dry weather in the next 2-3 weeks will accelerate the harvesting of sunflowers and soybeans, which will increase the volume of offers.

Purchase prices for sunflower fell to UAH 10,500-12,000/t with delivery to the factory against the background of the blocking of sunflower oil and meal exports through the Black Sea ports and the increase in the cost of delivery through Romania and Poland.

Low export demand for sunflower in EU countries increases the pressure on prices in Ukraine, although last year it was export deliveries that supported domestic purchase prices.

Delivered sunflower oil prices to buyers remain at $900/t, but falling feed grain prices will lower meal prices, adding pressure to the sunflower market.

In the EU, neighboring rapeseed and soybean markets are oversupplied, leading to a drop in purchase prices.

During the week, rapeseed demand prices fell by 10-15 $/t, in particular for supplies to DAP Danube ports - to 355-370 $/t, DAP East Germany (auto) - 400-410 €/t, DAP Baltic countries - 390 -395 €/t.

Exporters have sharply reduced soybean prices, and are now offering $365-$380/t for deliveries in Reny and Ishmael, although prices reached $500-$515/t in August. Demand prices for deliveries to Italy fell by 15-20 €/t to 420-450 €/t during the week.

The activation of the import of Brazilian soybeans to the EU reduces the demand for Ukrainian soybeans, the harvest of which this year will exceed last year by 30%, which, given the absence of a grain corridor, will complicate exports.

The market is awaiting today's USDA report, in which the forecasts for the world production of oil crops may be slightly lowered, which will hardly affect the quotes.