Purchase price of sunseed in Ukraine reached 25000 UAH/t, but further growth will limit the fall in oil and soybean oil prices
Purchase prices for sunseed in Ukraine continue to rise rapidly amid a shrinking harvest and a lack of offers from farmers. At the same time, prices for sunflower oil and meal are also rising, but not as fast as for sunflower.
As of October 4, domestic farmers harvested 8 mln tonnes of sunflower from 3.9 mln ha or 78% of the area, with the yield of 2.05 t/ha, which is lower than last year. The total harvest may reach 11 mln tonnes (15.5 mln tonnes in MY 2023/24), which will be lower than forecast.
This week, some processors to fulfill contracts for the supply of oil were forced to raise the purchase price of sunseed with an oil content of 50% to 25000 UAH/t with delivery to the plant, although a week ago they offered 22500-23000 UAH/t. But farmers continue to hold back sales in anticipation of further price increases.
During the week, the demand price for sunflower oil in the ports of Ukraine increased by another 20-30 $/t to 1015-1025 $/t, and for sunflower meal – by 5-10 $/t to 210-220 $/t.
Speculative growth in oil prices last week by 13% supported the price of palm oil, but yesterday oil prices fell by 4.9%, and December futures for soybean oil in Chicago – 3.5% to 949 $/t, which corresponds to the level of the previous week.
the price of Ukrainian sunflower oil can support the growth of demand from Turkey. According to the FAS USDA, in 2024/25 MG sunflower production in the country will decrease by 300 thousand tons to the lowest since MY 2015/16 level of 1.25 million tons due to very dry weather in the main growing region. Therefore, imports of sunflower may increase by 100 thsd tonnes to 550 thsd tonnes compared to 380 thsd tonnes in MY 2023/24.
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