Sunflower prices in Ukraine accelerated their decline under pressure from lower prices for vegetable oils

An increase in the forecast of global sunflower production in 2021/22 MG by 1.04 million tons to 57.04 million tons (49.11 million tons in 2020/21 MG), in particular for Ukraine to 17.5 million tons and Russia to 15.5 million tons, led to a decrease in sunflower prices, which accelerated after falling prices for palm and soybean oil.

During the week, purchase prices for sunflower seeds delivered to the plant fell by 800-1000 UAH/ton to 18700-19800 UAH/ton (690-730 $/ton with VAT) for oil content of 48-50%. Many processors, although experiencing a shortage of raw materials, are in no hurry to buy expensive sunflower seeds, given the decline in prices for vegetable oils.

February palm oil futures on the Malaysian stock exchange fell 4.7% yesterday to 4,486 ringgit/ton or.1,060/ton, losing 6.5% over the week under pressure from lower demand and export rates.

January soybean oil futures on the Chicago Stock Exchange rose 2.5% to.1,178/ton yesterday, recouping the fall at the beginning of the week, supported by data from the US soybean processing report, which in November amounted to 4.88 million tons, which was in line with analysts ‘ minimum expectations.

Supply prices of Ukrainian sunflower oil for delivery in January – February fell to 1 1330-1360/ton FOB, but demand prices fell to 1 1300-1330/ton FOB. Prices for sunflower oil were somewhat supported by the results of the Egyptian tender.

Egypt’s GASC on Tuesday held two tenders for the purchase of vegetable oils. At the local market,he purchased 37 thousand tons of soybean oil for delivery in February at a price of 1 1358-1381.66/ton of C&F, and at the international market – 30 thousand tons of soybean oil at a price of C 1354.5/ton of C&F and 39 thousand tons of sunflower oil at a price of 1 1390/ton of C&F for delivery during February 5-25.

Sunflower prices at the beginning of the new year will be under strong pressure from increased supply from producers, who postponed sales to the second half of the season in anticipation of higher prices. And in the spring, the pressure may increase due to a reduction in the area of corn sowing in favor of sunflower, due to rising fertilizer prices and low soil moisture levels.

GrainTrade 

Tags: prices, Ukraine, Russia, Egypt, sunflower, soybean oil