Prices for soybean and sunflower oil in Ukraine are falling under the pressure of increasing supply in the EU

Source:  GrainTrade

Last week, soybean and sunflower oil prices in Ukraine continued to fall amid declining EU prices and sharp increases in shipping costs due to the convention on rail transport to western transit stations and a shortage of tankers that are most involved in European fuel supplies.

Demand prices for sunflower oil with delivery to Romania and Bulgaria fell to $ 1700-1750 / t DAP, and for hydrated soybean oil with delivery to Poland – up to 1400-1450 $ / t DAP against the background of a sharp increase in supply in Ukraine. The cost of oil delivery from Ukraine to Poland increased from $ 100 to $ 150 / t, and to Romania and Bulgaria – from $ 150 to $ 200-250 / t.

Demand prices for sunflower oil on the basis of FCA – loaded into cars in Ukraine fell to 1200-1300 $ / t, and soybean – to 1300-1350 $ / t. However, sellers are carrying out small shipments in anticipation of resolving logistical problems associated with long queues at crossings due to difficulties with vet control and a shortage of tank trucks to be recruited from EU countries.

There is a shortage of vegetable oils on the world market due to Indonesia’s ban on palm oil exports and reduced production in South America.

July soybean oil futures in Chicago yesterday fell 1% to $ 1,828 / t on data on the reduction of soybean processing in the US in April to 4.62 million tons compared to 4.8-4.9 million tons in February and March, although analysts forecast it at 4.7 million tons.

China cut soybean imports from 9.82 to 8.87 million tonnes in April compared to March (12.06 million tonnes in April 2021), but a gradual resumption of trade will boost soybean demand in the country, which will support soybean prices. USA.

Against the background of blocking ports in Ukraine, prices for Russian sunflower oil remain at a high level of 1850-2000 $ / t FOB, but major traders refuse to buy Russian products due to sanctions and problems with currency settlements.

Quotations for palm oil remain at 6400 ringgit / t or 1455 $ / t. However, further rise in oil prices will help raise prices this week.

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