Purchase prices for sunflower seeds in Ukraine for a week has fallen by 15-20%
this Year, the price of sunflower in Ukraine're very irregular, as after the rapid growth of 35-40% in the beginning of the season this week, they have fallen sharply under pressure from the fall in world vegetable oil markets.
during the week, purchasing prices for sunflower seeds fell from 15000-15500 UAH/t (530-550 $/t) to 12500-13300 UAH/t (440-470 $/t delivered to the plant. Against the background of high prices, the producers stepped up sales, and processors quickly gained volume of raw materials needed for the production of oil under costly contracts. And later sunflower prices will move after the quotes on oil.
the Sharp decline in prices for vegetable oils due to the fact that in the initial stages of harvesting of soybean and sunflower they grew up on the speculative components. Continue collecting on the back of the seasonal increase in palm oil production have reduced the hype especially because global balance sheets of vegetable oils are quite balanced.
rumors about the reduction in yield is not justified. Sunflower seed production will decline slightly, but will fit the average level, and the global soybean crop at 20 MMT higher than last year. The rise in prices of vegetable oils reduced the demand from buyers, which led to a reduction in purchases, even in spite of active import from China.
If at first palm oil was the driver of price growth, but now it has become the leader of the fall. Futures on palm oil exchange in Malaysia yesterday fell by 3.8% to 2757 Ringgits/t or 662 $/MT, losing Monday of 10.5%.
Futures for soybean oil in the United States fell yesterday by 1.2% to 711 $/t
the price of sunflower oil in Ukraine yesterday fell to 40-50 $/ton to 850-880 $/MT FOB, but demand from buyers is limited, which in the short term will lead to a further decline in prices.