Sunflower oil prices have decreased worldwide, but the Ukrainian market remains stable

During the week, the prices of sunflower oil on foreign markets decreased by $50/t, which led to a correction of prices on the domestic market of Ukraine. Processors reduced the purchase price of sunseed by $10, which is less than the proportional decrease in the price of oil, reports Spike Brokers.

“This may indicate the narrowing of the processors’ margins and the desire not to miss the moment of profitable purchases due to the expected further increase in prices for raw materials. The current decrease in prices may be a signal of a future increase,” brokers note.

In addition, sunflower meal prices increased by $10 per week, which improves processing economics and supports the potential for further strengthening of sunflower seed prices next week.

The spot price index of sunseed with delivery within 30 days decreased by $9 to $688/t including VAT.

As of November 6, about 90% of the sunflower areas in Ukraine have been harvested, the total volume of the harvest is 8.7 million tons. The yield remains consistently low — at the level of 1.89 t/ha. Taking into account the pace and structure of the collection, the total volume of production this season is unlikely to exceed 10 million tons.

“Low yield and low oil content in seeds will limit the supply of Ukrainian sunflower oil on foreign markets. At the same time, the gap in prices between sunflower and alternative vegetable oils tends to widen during the season,” adds Spike Brokers.

Tags: sunflower oil, prices, sunseed, Ukraine