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Sunflower oil plummeted following palm oil losses: Agritel
2 June 2021, 14:29
Sunflower oil prices are falling sharply on a weekly basis in the wake of the losses suffered by palm oil, the Agritel consultancy writes.
"Market operators are concerned about the Asian demand for vegetable oils in the context of the spread of the Indian variant of the virus," the report reads.
As reported, sunflower oil is now trading at 1450 USD/t FOB Odesa, compared to 1570 USD/t ten days ago. The new crop oil is now under 1200 USD/t FOB Odesa after having touched above 1250 USD/t, Agritel analysts note.
"Nothing grows forever. The demand for other oils in the world prevents sunflower oil from rising further in price, and with farmers' current wants it is way easier for crushers to stop processing and terminate the in-take," Maxigrain business development manager Elena Neroba told Latifundist.com.
In her view, Ukraine will be unable to export the full amount of sunflower oil set in the Memorandum (5.38 mln t) as there is no demand.
Learn more: TOP 10 Unrefined Sunflower Oil Producers 2019/20 in Ukraine
Crushing plants in Ukraine produced 230.6 thou. t of refined sunflower oil in 4M 2021, 30% lower YoY. Unrefined sunoil production in this period dropped by 20.6% YoY.
Sunflower production 2020 in Ukraine was finalized at 13.1 mln t on 6.4 mln ha, the average yield stood at 2.06 t/ha.
As per statistical data, sunseeds stocks in Ukraine as of May 1 were 38% lower YoY. The Ukroilprom Association reported that sunflower oil export from Ukraine as of May 1 made 72.6% of agreed in MoU volume.
