Purchase prices for sunflower seeds in Ukraine falls behind the market of sunflower oil

during the last weeks the prices for vegetable oils, particularly palm, has declined substantially. So, the bid prices for sunflower oil fell to 40-50 $/ton to 1220-1250 $/t FOB, as a result purchasing prices for sunflower in Ukraine dropped to 500-800 UAH/t with 22500-22800 UAH/ton (delivered to plant) last week to 21600-22000 UAH/t on Monday.

against this background, the manufacturers stopped selling because got used to that after each drop the prices immediately grew quickly due to low supplies of raw materials in the factories. But the refiners are under pressure sharp decline in prices for palm oil today are shaping pricing strategies given the us stock market and the price trend of soybean oil.

Yesterday, the April futures for palm oil exchange in Malaysia fell 2.2% to 3350 Ringgits/t or 827 $/t due to a substantial decline in exports in the first half of January.

According to APK-inform, due to high prices and good export demand Ukraine this season have increased the exports of sunflower oil by 12% to 2.2 million tons, including in December, shipped to 594 thousand tonnes IN 2019/20 MG sunflower oil exports amounted to 6,632 million tonnes, but this season he will be reduced due to low yield of sunflower and premature stop some of the processing plants.

a Shortage of supply of Ukrainian sunflower oil in the second half of the season will lead to an increase in the spread between the prices of sunflower, palm and soybean oil, however, the projected increase in the production of soy and palm oil in the second quarter will keep the rise in price of sunflower oil.

the Purchase price of soybeans in Ukraine last week after the world grew by 10-15 $/t soybeans with GMOs to 520-525 $/t or 17250-17800 UAH/t at the port and soybeans GMO free at 540-545 $/t at the port or 560-565 $/t at the border with Poland and Belarus.

the Processors are in active competition with the traders have been forced to raise prices for soybeans with GMOs by 200-300 UAH/t to 18000-18200 UAH/t (equivalent to 540-550 $/t at the port) and soybeans without GMO to 500-600 UAH/t to 18400-18900 UAH/t (equivalent 555-570 $/t at the port).

a Shortage of supply will support prices for oilseeds at a high level throughout the season.