Growth of sunseed prices in Ukraine has stopped amid falling prices for vegetable oils, but may soon resume
Purchase price of sunseed with an oil content of 50% at the end of last week decreased in Ukraine by 300-500 UAH/t to 26500-27200 UAH/t with delivery to the plant amid a possible decline in prices for sunflower oil following the prices of palm and soybean oil.
At the same time, amid a shortage of supply from producers, the premium for high oleic sunflower over the past month has increased from 2000 to 4000 UAH/t, so prices for it reached 30000-31000 UAH/t with delivery to the plant.
Demand price of sunseed with delivery to Bulgaria for the week increased by 10-15 $/t to 620-640 $/t with delivery in November, which is equivalent to 29000-30000 UAH/t with delivery to the plant.
During the week, the price of sunflower oil in the ports of Ukraine increased by another 10-20 $/t to 1140-1160 $/t amid limited supply, while the price of meal decreased by 5-6 $/t to 190-205 $/t due to increased supply of soybean, rapeseed and sunflower meal to the world market.
According to Trading Economics, the average price of sunflower oil for delivery to buyers for the week fell by 20 $/t to 1330 $/t, but these data are more reflective of the Indian market, as in the EU prices remain at 1180-1220 $/t.
December futures for palm oil on the Bursa exchange in Malaysia yesterday fell by 3.8% to 4899 ringgit/t or 1093 $/t (-6% for the week). But local traders do not expect a further decline due to the ban on exports of palm oil by Thailand in 2025, as well as the increased use of this oil for biodiesel in Indonesia and Malaysia.
December futures for soybean oil on the Chicago stock exchange for two sessions rose 2.2% to 1006 $/t (+7% for the month), as traders began to take profits after falling by 8.3% in the previous week.
Price of soybean oil supports a record soybean processing in the United States, which in October reached 5.44 million tons, while analysts predicted 5.35 million tons, which exceeded the previous record set in March 2024.
The possible escalation of the war between Russia and Ukraine will contribute to the growth of prices for sunflower oil due to the risks of disruption of supplies from the Black Sea. Against this background, January futures for Brent crude oil rose by 3.2% to $73.3 per barrel yesterday (+2% for the week).
China’s decision to abolish tax incentives for the export of used vegetable oil from December 1 will sharply reduce supplies, especially to the United States, which may increase demand for soybean and rapeseed oil from the biodiesel industry.
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