Procurement prices for sunflower in Ukraine dropped to a record low

The preliminary data on sunflower harvesting in Ukraine continues pressing on the prices, which have already reached the minimum level, Grain Trade reports.

"Procurement prices at the end of the previous week fell to a record low of 8.6-9.2 thou. UAH/t with delivery to the crushing plant. This is 1.2-1.6 thou. UAH/t less from the price at the beginning of the season. The main reason is a significant volume of supply, as producers prefer to sell sunflower but hold back sales of wheat and barley due to low prices," the report says.

Export prices for sunflower oil have also declined. Within a week, it fell in price by 10-15 USD/t to 690-700 USD/to FOB with delivery in October-November and to 685-690 USD/t FOB with delivery in Q1 2020. Last year, prices for sunflower oil fell to 620-640 USD/t FOB under the pressure of falling palm and soybean oil prices.

Experts note that November futures for palm oil in Malaysia rose on Friday to 526.10 USD/t. However, for the third week in a row, quotations are gradually declining due to low export demand, and it is only a reduction in production that supports prices.

December soybean oil futures increased by 1% to 655 USD/t after the resumption of US soybean imports by China.

Vegetable oils will rise in price following a rise in oil prices, which after the drone attack on the world's largest refinery in Saudi Arabia rose by 10% to 66.75 USD/bbl for Brent. Increased demand from India also supports prices. According to the Solvent Extractor's Association (SEA), in August India increased the import of vegetable oils by 5% to an 11-month maximum of 1.6 mln t, in particular, palm oil to 852.5 thou. tons, soybean oil to 440.7 thou. tons, sunflower oil to 230 thou. tons and rapeseed oil to 63.253 thou. tons.

Previously reported that sunflower harvesting campaign progressed to 5.4 mln t by September 16. The crop was harvested on 2.5 mln ha (43%) using the average yield of 2.18 t/ha.