Oilseed processing plants in Ukraine completed 2020/21 season early: traders
Some oilseed processing plants in Ukraine have shut down for planned and preventive maintenance earlier than usual in the 2020/21(September 2020-August 2021) season for a lack of demand, Refinitiv Agriculture wites.
Analysts marked that a dramatic drop in oil prices, as well as challenges in selling stocks of sunflower oil produced from expensive raw materials, have forced a number of oil refineries to suspend operations.
"Usually the plants operate until mid-July, but this year the situation is the opposite," says a trader.
Export quotes for crude sunflower oil from Ukraine recovered slightly after falling to a 6-month low last week.
"The sharp decline in sunflower oil prices has attracted several importers and trading activity in the market has intensified," say commodity traders.
The July-September sunflower oil offer prices climbed to 1,150-1,200 USD/t FOB. CPT prices for sunflower oil rose to 1,080-1,090 USD/t, up from below 1,000 USD/t CPT last week.
In September-May, sunflower oil export from the country made up 4.42 mln t.
As of June 1, sunflower stocks in Ukraine were 39% lower 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.
The Economy Ministry and the Association Ukroilprom agreed on the sunflower oil export ceiling of 5.38 mln t for the 2020/21 season.