Prices for sunflower and soybeans in Ukraine began to decline

Prices for sunflower and soybeans began to decline. Despite the growth of stock quotes for soybeans and vegetable oils, the physical market in Ukraine behaves quite calmly. Alexander Tishchenko, an analyst at Zernotorg.ua, said this in a commentary to Kurkul.com.

“On the Ukrainian market, there was a noticeable increase in prices for oilseeds at the end of protracted holidays, but it was short-term. Now the prices are gradually sliding down. It seems that the factor of restraining sales by oilseed producers is gradually exhausting itself,” Tishchenko said.

He noted that sunflower prices have not reached the expected UAH 25,000/t, while soybeans remain significantly below their last year’s high of UAH 20,900/t. However, crop stocks remain strong due to slow pace in the first half of the season amid a record harvest.

“The restraint of sales by producers affects the rhythm of processing and export shipments, which reduces the competitiveness of domestic sunflower oil on the world market,” Tishchenko added.

He also noted that traditionally prices for oilseeds are reduced in February-March against the backdrop of a seasonal decline in prices for vegetable oils, as well as in June-August due to the end of the season.

Recall that in September-December 2021, the volume of sunflower oil production in Ukraine decreased by 3-5%. At the same time, from the beginning of 2022, an increase in production volumes is expected.

Kurkul.com

Tags: Ukraine, sunflower, prices, soybean