Ukrainian sunflower prices fell by 200-500 UAH/t over the week and now stand at 14.300-16.000 UAH/t with delivery to the factory, according to data from the electronic grain exchange GrainTrade.
“Processors have started to reduce purchasing prices as sunflower oil prices fall and logistics costs towards western borders rise,” said the experts.
They explain that factories have also built up stocks of raw materials for several months in advance, so sunflowers continue to be purchased at low prices, especially in the event of a further reduction in the cost of finished products.
In addition, according to experts' estimates, demand prices for sunflower meal at the ports have fallen to 160-170 dollars per ton and are likely to increase in the near future under the pressure of falling world market prices for corn and feed wheat, as well as in the ZusaThis will continue to fall with increasing deliveries of soybean meal from Argentina.
In Ukraine, demand prices for sunflower oil fell during the week to $735-740 per ton when delivered to ports and $780 per ton when delivered to Bulgaria.
“Lower global vegetable oil prices, significant inventories of raw materials at mills and virtually non-existent export demand are depressing sunflower prices in Ukraine. The acceleration of the soybean harvest in Brazil and the better weather in Argentina are increasing the pressure on soybean oil prices, leading to a decline in prices in the neighboring palm and sunflower oil markets,” the experts concludeusamm.
Source: oleoscope (Russian)