Purchase prices for sunflower seeds in Ukraine continue to grow

Purchase prices for sunflower seeds in Ukraine continue to grow against the background of a shortage of offers and a rise in the price of palm oil.

Since the beginning of the week, prices for sunflower seeds delivered to the plant have increased by 200-400 UAH/ton to 19000-20500 UAH/Ton (7 722-775/ton with VAT) for oil content of 46-48% and with a premium for the best oil content. Manufacturers are holding back sales, expecting prices to rise to last year's level and reduce the cost of Transportation, which has doubled in price in recent months.

According to processors ' estimates, producers sold only 1/3 of the harvested sunflower, although usually almost half of the crop has already been sold during this period. To load capacity, processors are forced to raise purchase prices, even though they receive a negative processing margin.

Supply prices of Ukrainian sunflower oil for delivery in December increased to F 1,420-т 1,430/ton FOB amid a decrease in sunflower supply and uncertainty with the subsequent intensity of deliveries.

Sunflower oil prices are supported by the relentless rise in the price of palm oil, February futures for which on the Malaysian stock exchange yesterday rose again by 2% to a monthly high of 4998 ringgit/ton or 1 1196/ton.

On the Chinese stock exchange, palm oil futures rose 1% to.1,526/ton, and soybean futures rose 0.6% to. 1,510/ton.

December soybean oil futures on the Chicago Stock Exchange remained at 1 1,306/ton, not reacting to an increase in weekly sales of soybean oil to the highest level of the season – 67.5 thousand tons.

In Ukraine, Rain in the coming days may increase the supply of Motor Transport, which will increase the transportation of contracted sunflower seeds from farms to factories and increase sales against the background of rising purchase prices.

Farmers have significant working capital reserves, so they expect prices to rise to last year's level of 24-27 thousand UAH/ton with delivery to the plant. However, they do not take into account that Ukraine and Russia have collected more sunflower crops than last year, and the entry of a record soybean harvest from Brazil into the market in the spring may bring down oil prices, so processors will not be able to sell sunflower oil at high prices.