Ukrainian sunflower oil may go up to USD 700 per ton
Prices for sunflower oil in Ukraine may reach USD 700 per ton in the background of reduced supply, Exp.idk.ru informs with reference to the Platts sources.
Plants experience difficulties with the supplies of sunflower seeds for oil production, as producers prefer to hold stocks in anticipation of further price increases.
FOB Chernomorsk 3 thou. tons for supplies in March were estimated by S&P Global Platts at USD 668 dollars per ton on Monday, which demonstrates an increase of USD 6 per day since the offer declined and the rates rose.
“In the meantime, snowy weather impedes seeds transportation. About 70% of the seeds are transported by trucks, and drivers have to work in difficult conditions. Thus, a number of processing enterprises, especially small ones, cannot process oilseeds. Some large plants are well supplied until April-May, but they hold back the sale of existing oil reserves due to high demand,” sources say.
However, analysts expect that in February more sunflower seeds will be supplied to the market, which should reduce price pressure and increase the amount of oil available.
As previously reported, in the first three months of MY2018/19, large and medium-sized enterprises in Ukraine produced a record volume of sunflower oil for this period.
The new infographic guide Agribusiness of Ukraine 2017/18 is available by the link.