The decrease in the sunflower harvest in Ukraine has not yet led to an increase in purchase prices

Ukraine is finishing harvesting sunflowers, the harvest of which will be the lowest in many recent years. But so far this has not affected purchase prices, as the main sunflower oil production plants are concentrated near the Black Sea ports and their work has been stopped due to frequent missile attacks, and the export situation remains unclear.

As of November 4, 9 million tons of sunflower were threshed from 87% of the area or 4.1 million hectares in Ukraine with a yield of 2.2 tons/ha, which confirms the pessimistic estimates of production at the level of 10 million tons compared to last year's 17.5 million tons.

The purchase prices of sunflower in Ukraine remain at the level of 14-15 thousand UAH/t or 385-410 $/t with delivery to the factory under the pressure of low prices for sunflower oil and meal due to uncertainty with further export through Black Sea ports.

Export prices for sunflower with delivery on DAP - Romania, Hungary and Bulgaria remain at the level of 560-580 $/t, which allows exporters to buy sunflower at 14-14.5 thousand UAH/t on the basis of FCA - economy and keeps prices from further decline .

Domestic sunflower oil prices remain at $1,000-1,050/t for port deliveries or $1,150-1,200/t for deliveries to Poland or Bulgaria, while Russian sunflower oil prices rose to $1,250-1,300/t FOB- Black sea.

Sunflower oil prices are supported by rising stock prices for palm and soybean oil.

December palm oil futures on the Malaysian exchange rose 9.3% for the week to a monthly high of 4,433 ringgits/t, or $935/t, amid stronger demand due to rising soybean oil prices and curbs on sunflower oil exports from Ukraine. At the same time, the market is pressured by the increase in palm oil reserves in Malaysia at the end of October to a 3.5-year high of 2.53 million tons, caused by an increase in production and a decrease in exports.

According to the forecasts of the Palm Oil Association of Indonesia (GAPKI), the production of palm and kernel oil in the country will decrease compared to last year from 51.6 to 51.3 million tons.

Against the background of active export of soybean oil from the USA, its December futures on the Chicago Stock Exchange increased by 4.5% to $1,685/t during the week, which corresponds to the level of the beginning of June.

We will remind that at that time the demand prices for sunflower oil were $1500-1600/t with delivery to the EU, but now European processors are provided with raw materials until January-February thanks to the increase in sunflower offers from the EU and Ukraine.