The purchase price of soybeans and sunflower in Ukraine continue to grow rapidly

In this season of unusually high prices for vegetable oils at the beginning of the harvest, and reduced harvest forecasts to soybean and sunflower in the result of the August drought has led to an increase in purchase prices for the specified culture.

the price of vegetable oil last week rose to their highest January level amid increased demand from China. First, rose palm oil, and then on the back of lower forecast production it was joined by soybean and sunflower.

Prices for Ukrainian sunflower oil in two weeks has grown to 50-80 $/t to 850-880 $/MT FOB, and bid prices for the next delivery – to 900 $/t FOB. However, the bid prices do not exceed 850-860 $/MT FOB as buyers expect their seasonal decline. Sunflower oil with delivery in December and January offer, respectively, 880 and 860 $/t FOB, which confirms the expected market seasonal decline in prices due to the increase of proposals of soy oil from USA, palm from Indonesia and Malaysia, as well as sunflower seed from the black sea region.

the Purchase prices of sunflower for the week increased by 600-1000 UAH/t to 11700-12300 UAH/t with delivery to the plant. In the South the plants are actively increasing prices due to shortage of supply. As at 3 September in Ukraine with 455,5 thousand hectares or 7% of the area harvested 700,62 thousand tons of sunflower with an average yield of 1.54 t/ha. This confirms the pessimistic assessment of the crop at the level of 13.5-14 million tons compared to 15 million tons.

soybean Harvesting has just begun, with 30 thousand ha or 2% of the area harvested 49,86 thousand tons with an average yield of 1.66 t/ha. the Crop is estimated at 2.6 to 2.8 million tons compared to 3.7 million tons.

Due to the growing demand for soybeans from China prices of Brazilian soybeans rose to 415-420 $/t FOB, on the American and Argentine – to 390-400 $/t FOB, in spite of the projected increase in production in the new season. Against this background, the exporters raised the price of Ukrainian soybeans with GMOs to 370-380 $/t or 12000-12300 UAH/t, and soy non-GMO to 400-410 $/t or 12500-12800 UAH/t at the port. Processors yet offer nothing more soy 11500-12000 UAH/t with delivery to the plant.

This week there will be an updating of the prices of oilseeds on the background of falling oil prices and the publication of the updated USDA balance sheet for oilseeds and vegetable oils.