Sunseed prices in Ukraine have exceeded 27000 UAH/t with delivery to the plant, and farmers are holding back sales, although soon the quotes may turn down

Last week, prices for soybean and palm oil on world exchanges rose sharply amid speculative oil price increases caused by a possible escalation between Iran and Israel. This also supported prices for sunflower oil and sunflower seeds.

In Ukraine, against the background of limited supply of sunseed and the need to fulfill contracts for the supply of oil, the purchase price of sunflower with an oil content of 50% at the end of the week rose to 25600-26400 UAH/t with delivery to the plant, and for oil content of more than 52%, processors were willing to pay 27000 UAH/t.

As of October 24, domestic farmers from 4.63 million hectares or 94% of the area harvested only 9.54 million tons of sunflower with a yield of 2.06 t/ha, so processors are trying to buy as much raw material as possible. Some plants are switching to the purchase and processing of soybeans, which slightly reduces competition in the sunseed market.

During the week, the price of sunflower oil in the ports of the black sea rose by another 20-30 $/t to 1080-1100 $/t, while the price of meal decreased by 3-5 $/t to 215-222 $/t following the fall in corn prices and amid increasing supply of soybean meal.

Yesterday, the December futures for Brent crude oil fell 6.3% to 71.5 $/barrel, which corresponds to the level of last month, before the beginning of the shelling by Iran of Israel. This turned down the prices of soybean and palm oil.

December futures for soybean oil on the Chicago stock exchange yesterday fell 3.5% to 940 $/t (+0.7% for the week, -1.4% for the month) following the fall in soybean prices, which amid improving production forecasts in Brazil for the month fell by 9%.

December futures for palm oil on the stock exchange in Malaysia after updating a 2.5-year high yesterday fell 1.6% to 4529 ringgit/t or 1043 $/t.

Fall in oil prices will accelerate the decline in prices for vegetable oils, so farmers would be better to accelerate sales of sunseed at high prices, without waiting for the plants to reduce processing volumes with a negative margin caused by lower oil prices.

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Tags: sunseed, Ukraine, sunflower oil, prices