Purchase prices for soybeans and sunflower seeds in Ukraine are falling after the world prices

The collapse of quotations for vegetable oils on world stock exchanges increases pressure on the purchase prices of soybeans and sunflower in Ukraine, especially given the favorable weather conditions.

On the Chicago SWOT, July soybean oil futures fell 5.7% to.1,365/ton, and December – 6.7% to. 1,270/ton, losing speculative growth in June due to hot weather in soybean growing regions in the United States. The uncertainty of the country's authorities regarding changes in the use of biofuels in the production of automobile fuel also puts pressure on the market.

Following soybean oil prices yesterday, August palm oil futures in Malaysia fell 5.2% to 3,404 ringigts/ton or 8 827/ton, losing 7.6% of the price since the beginning of the week.

In Ukraine, export prices for sunflower oil of the old crop for delivery in August decreased to 1 1220-1240/ton FOB, and for the new crop – to 1 1100-1150/ton FOB. However, due to the lack of demand for oil, purchase prices for sunflower seeds fell by another 800-1000 UAH/ton to 17000-18000 UAH/ton with delivery to the plant.

According to the Ukroliyaprom Association, from September to May of the 2020/21 season, Ukraine exported 4.4205 million tons of sunflower oil, or 82.1% of the export volume agreed by the memorandum for the current season. In particular, 502 thousand tons of sunflower oil were exported in May.

Prices of soybean oil offers delivered to the border decreased by 50-100 €/ton to 1100-1150 €/ton due to the lack of demand from European buyers. Therefore, purchase prices for soybeans also fell over the week by 500-600 UAH/ton to 18200-18400 UAH/ton with delivery to the plant. Export prices for non-GMO soybeans decreased by 3 30-40/ton to 7 710-730/ton with delivery to the border with Belarus. Demand for soybeans continues to fall, but there are almost no GMO-free soybeans with a high protein content left in the country.