Rising palm and soybean oil prices have not yet increased demand for sunflower oil
After the collapse of sunflower prices in Ukraine by 25-30% in a month, producers practically stopped sales. And processors are currently suffering from low export demand for sunflower oil, even though its prices are much lower than soybean oil, and sometimes even palm oil.
Rising oil prices, driven by a surprise decision by Saudi Arabia and other OPEC+ countries to sharply cut production, have boosted soybean and palm oil prices, but have so far failed to support sunflower oil demand and prices.
Following the oil market, June palm oil futures on Bursa Malaysia rose 3.3% yesterday to RM3,885/t or $879.56/t (+8.6% on the week) after last week's decline. was the largest daily increase in the last two months.
Malaysia on Sunday said it had signed a memorandum of understanding with a trade association backed by Chinese authorities to expand cooperation and trade in palm oil. Against this background, traders intensified speculative purchases, which also supported the quotation.
On the Chinese stock exchange in Dalian, soybean oil contracts rose by 1.4% and palm oil contracts by 1.7% yesterday.
May soybean futures on the Chicago Mercantile Exchange rose 2.2% to $1,252/t yesterday, adding 8.3% in the past 8 sessions, but remaining 6.8% lower than a month ago.
In the near term, soybean oil prices will be supported by a delay in soybean harvesting in Brazil and a poor harvest in Argentina.
Demand prices for Ukrainian sunflower oil continue to fall and last week fell to $900-950/t CIF Bulgaria or Turkey, while demand from European buyers is virtually non-existent.
Spot orders for the purchase of sunflower oil in the ports of Ukraine fell to the lowest level since October 2020 of $850-900/t SRT.
Purchase prices for sunflower in Ukraine last week remained at the level of UAH 12,500-15,500/t or $340-425/t with delivery to the plant. However, sunflower export prices for delivery to Bulgaria, after falling to $410-430/t, recovered to $440-460/t, which gives hope for a further increase in quotations.
