Purchase prices for sunflower growing against a rise in price of vegetable oils
the Purchase price of sunflower in Ukraine and Russia continue to grow rapidly on data on low yields and on the background of rise in price of sunflower oil, the quotations which have already crossed the psychological level of $1,000/MT FOB.
Experts USDA in the September balance decreased compared to the August estimate of forecast of world production of sunflower by 1.8 million tonnes to 54,015 million tonnes compared with 55,05 million tonnes in 2019/20 MG, and the forecast of sunflower oil production by 0.35 million tons to 20.96 million tons compared with that of 21.15 million tonnes in 2019/20 Mr.
For Ukraine, the forecast of sunflower production was reduced 0.5 million tons to 17 million tons compared to 16.5 million tons, and for Russia by 0.5 million tons to 13.5 million tons, while last year it amounted to 15.3 million tons.
it Should be noted that USDA is too optimistic about the yield of sunflower in Ukraine, as local analysts lowered their forecast to 13-14 million tonnes But the Outlook for Russia corresponds to the data of the Ministry of agriculture, which estimates the crop at 13 million tons.
As of 14 September in Russia with 1.2 million hectares or 14% of the area harvested 2 million tons of sunflower with a yield of 1.66 t/ha, which corresponds to the previous forecasts.
In Ukraine on a specified date only 1.2 million hectares or 19% of the area harvested of 1.98 million tonnes of sunflower with a yield of 1.65 t/ha. Even in the case of increasing average yields in other regions of the country to 2-2. 5 t/ha to collect more than 13-14 million tonnes will fail.
On the data about low yields the purchase price of sunflower in Ukraine over the past 3 days increased by 200-400 UAH/t to 13000-13600 UAH/t with delivery to the plant, equivalent 465-485 $/t Farmers against high prices has increased sales, resulting in factories formed a queue. But that will not stop the increase in purchase prices that are supported by quotations of sunflower oil, which is rapidly becoming more expensive.
In Russia the purchasing prices of the sunflower, according to local operators, increased by 4-5 thousand rubles/t to a record of 28-30 thousand rubles/t (360-400 $/t).
Slower price growth in Russia due to the fact that even in the Krasnodar region, which suffered from drought, the average yield of sunflower is 1.5 t/ha, whereas in southern regions of Ukraine it does not exceed 0.8-1.5 t/ha. This strengthens the panic among the processors, which increase prices in order to buy more raw materials.