Sunseed prices in Ukraine fell by 1000 UAH/t amid declining stock prices for soybean and palm oil

Amid a sharp drop in prices for rapeseed, canola, soybean and palm oil, Ukrainian processors have reduced their purchase prices for sunseed, expecting a collapse in sunflower oil prices.

Ignoring the forecast reduction of the crop and increase the volume of soybean processing in the United States, the December futures for soybean oil on the Chicago stock exchange for three sessions fell by 7.8% to 930 $/t (-2.8% for the month), for two weeks, losing 14.9% growth in early November.

December futures for palm oil on the Bursa exchange in Malaysia yesterday fell 3.2% to 4772 ringgit/t or 1066 $/t (-6.6% for three sessions, -6.9% for two weeks) on forecasts of a decrease in exports in November. Local analysts expect palm oil prices to remain at 4800-5000 ringgit/t in the near future due to reduced production and stronger export demand.

In Ukraine, the purchase price of sunseed with an oil content of 50% this week fell by 1000-1300 UAH/t ($28) to 26000-26500 UAH/t ($ 630) with delivery to the plant, as processors expect a sharp decline in prices for sunflower oil following the prices of soybean and palm oil.

Export demand prices for sunflower oil in the ports of Ukraine on Monday fell by 5-10 $/t to 1140-1155 $/t, but traders did not lower the bid prices, given the shortage of supply of sunflower and oil.

According to Trading Economics, the average price of sunflower oil for delivery to buyers on Monday increased by 5 $/t to 1335 $/t.

Fall in prices of rapeseed in the EU for three days by 6.3% will increase pressure on prices of rapeseed and sunflower oil, but rising oil prices and possible disruptions in the supply of sunflower oil from Ukraine and Russia, caused by the attacks on Ukraine by intercontinental missiles from Russia and increased retaliatory strikes, will support the premium for sunflower oil at a high level (compared to soybean and palm oil).

Tags: sunflower oil, prices, sunseed