Ukraine. Processors increase the price of sunflower for attracting volumes

30.10.2018

According to the agriculture Ministry, Ukraine as of October 26, with 96% of the area harvested 13 million tons of sunflower with a yield of 2.28 t/ha.
 
This gives reason to believe that the forecast receiving this season, the record harvest of sunflower in 15 million tonnes is not confirmed. Although it is worth considering the underestimation of the farmers actual production, because sunflowers are often sold on the black market.
 
According to estimates of Ukrainian agrarian Confederation, a quarter of domestic sunflower market operates in the shadows. This creates an imbalance between the production and the processing and export of oil and meal, and also complicates the work of companies operating officially.
 
Forecasts an increase in the processing of sunflower has led to falling prices for oil with delivery in November-December 10-15 $/t, which corresponds to the trends of the world market.
 
Experts expect that in the near future sunflower prices will continue to decline, especially given the record harvest and trends of the vegetable oil markets.
 
According to the Agrarian Union of Ukraine, over the last week the prices of sunflower seeds increased by 100 UAH/t at 10200 UAH/t to 10300 UAH/t on EXW basis-Elevator and 10200-10600 UAH/t to 10300-10700 UAH/t on the basis of the CPT-plant. Export prices of goods rose by 3 $/t for deliveries in November-December.
 
Analysts believe that the price increase is due to a desire to stimulate a more active sales by the manufacturers, who now hold party sunflower in anticipation of further price increases.


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