Purchase prices for sunseed in Ukraine increased to 23000 UAH/t
Purchase prices for sunseed in Ukraine continue to rise amid lower harvest forecasts and higher prices for sunflower meal and oil.
As of September 26, 6.66 mln tonnes of sunseed were harvested from 3.268 mln ha or 66% of the area, yielding 2.04 t/ha, which is lower than last year. It is already clear that the total harvest will be less than the USDA forecasted 12.5 mln tonnes and 15.5 mln tonnes harvested in 2023/24 MY.
This increases the demand from the processors, who raised the prices for sunseed with oil content of 52% by another 500-800 UAH/t to 22500-23000 UAH/t with delivery to the plant during the week. However, farmers are holding back sales in anticipation of further price increases.
For the week in the ports of Ukraine demand prices for sunflower oil increased by 20-30 $/t to 970-990 $/t, and for sunflower meal – by 5-10 $/t to 200-210 $/t, which supports the price of sunflower.
Export demand prices for SFS also increased by $20/t to 500-510 $/t DAP Bulgaria, which, taking into account logistics and duties, is equivalent to 20,000 UAH/t FCA and indicates an overvaluation of Ukrainian sunseed.
Decline in oil prices and the increase in India’s duty on imports of vegetable oils should have last week to reduce stock prices, but the November futures for palm oil on the stock exchange in Malaysia on Monday rose by 5.2% and only on Friday fell by 2.4% to 4052 ringgit/t or 983 $/t.
December futures for soybean oil on the Chicago stock exchange for September 19-25, increased by 9%, and for Thursday – Friday on the background of profit-taking by traders fell by 4% to 934 $/t, which corresponds to the level of last month. During September, the quotes fell to 859 $/t and reached 971 $/t amid difficult weather in Brazil during the planting of soybeans.
Forecasted for the coming days of precipitation in Brazil slowed the growth of prices for soybeans and soybean oil. If the rainy season will bring heavy rainfall in the Central regions next week, the prices of all oilseeds will be greatly reduced.
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