Recovery of rapeseed prices supports sunflower prices in Ukraine

Stronger EU biodiesel demand and a quick recovery in rapeseed prices in Paris after a 10% collapse supported EU sunflower oil and Ukrainian sunflower oil prices.

 

February rapeseed futures on the Paris MATIF yesterday rose 1.3% to €532.75/t or $562.5/t (-0.7% on the month) amid curbed sales by farmers.

 

January canola futures on the Winnipeg exchange rose 6.9% in 3 sessions to CAD 619/t or $437/t (-7.9% on the month), although they remain under pressure from low soybean and soybean oil prices in the USA.

 

In Ukraine, the purchase prices for rapeseed delivered to the Black Sea ports rose after the collapse to UAH 24,500-25,000/t or $530-535/t, and traders are competing for the remaining stocks available on the market. Against this background, purchase prices for sunflower with an oil content of 50% increased during the week by 200-300 UAH/t to 25,800-26,200 UAH/t with delivery to the factory, as farmers hold back sales in anticipation of price recovery.

 

In the ports, demand prices for sunflower meal fell to $180-190/t, and for sunflower oil - to $1100-1115/t, which increases the pressure on processors.

 

Against the backdrop of supply shortages and the growth of the euro exchange rate against the dollar, demand prices for sunflower oil with delivery to the EU rose to $1,160-1,190/t.

 

According to Trading Economics, the average price for sunflower oil delivered to customers this week was $1,308/t.

 

January palm oil futures on Bursa Malaysia have been trading at 5,120 ringgit/t or $1,140/t for 3 sessions, pending Malaysia's November production, export and oil stocks report.

 

In today's USDA report, the assessment of the sunflower harvest in Ukraine may be revised according to the harvest data, which will worsen the global balance of sunflower oil.