The world prices for Sunflower oil on the basis of FOB Black Sea Ukraine fell to the lowest value since May 2020, reports the American news agency «S&P Global Platts». On June 2, supply fell to $689 per tonne as demand for the product eased and difficulties encountered with shipments from the Black Sea region.
At the same time, Platts experts noted that the fall in prices was hardly affected by information about the extension of the "grain corridor" for another 60 days (until July 18), since the European oil market is still overheated and all supply contracts until mid were completed in May.
Russia, in turn, informed the Istanbul Joint Coordination Center the night before about the decision to limit the registration of ships in the southern port near Odessa against the background of the lack of exports of domestic ammonia through the Toliati-Odessa pipeline. Against this background, demand for Ukrainian oil supplies weakened even more.
«The question for buyers is how the grain corridor will continue to work: like last month or better. With the South locked down, it's unclear how much shopping we'll see," said Platts, one of the market participants.
As reported, the slowdown in the port of Odessa and the realignment of ports on the Danube have limited the pace of exports of finished Ukrainian products to India and China, while purchasing opportunities in Russia against the background of low prices for rapeseed oil and high availability of domestic Sunflower oil stayed on the market quite well.
Source: oleoscope (Russian)