New developments are expected in the sunflower market in Ukraine, which will inevitably affect prices. Reduction in purchase prices by processors and suspension of sales by farmers have led to production stoppages at some plants. Ukrainian industry media confirm this information.
According to the data of the Ukrainian Grain Exchange, in the past week sunflower prices have decreased by another 3-7$/ton to 565-595$/ton. This happened against the backdrop of a decrease in the price of sunflower oil to 1,050-1,070$/ton for delivery in January to ports on the Black Sea. Trading Economics data indicate that the average world price for sunflower oil delivered to consumers in the past week decreased by 0.5% to $1,255/ton. Over the month, the price dropped by 4.2%.
An increase in sunflower oil supply from Russia is putting pressure on Ukrainian prices. Additionally, the cheap soybean oil has led to a drop in palm oil prices, causing a decrease in all major quotes.
In Russia, sunflower prices have also decreased. Data on the harvest publication indicates the receipt of 16.6 million tons of product. The export duty on sunflower oil in January increased by 1.7 times to $160/ton, and the indicative price of oil for duty calculation is $1,027/ton. Local analysts note that export prices for Russian sunflower oil in December fell by 13% or $150/ton.
On the Bursa Malaysia exchange, palm oil futures for February traded at 4,500 ringgits per ton or $1,015 per ton. This happened against the backdrop of increased exports from Malaysia and reduced trading activity leading up to Christmas. In January, palm oil prices may rise due to an increase in the export duty on crude palm oil (CPO) in Indonesia from 7.5% to 10% and the introduction of the B40 standard, which will reduce exports.
Soybean oil prices remain low due to forecasts of a good harvest in South America. This will suppress the rise in palm and sunflower oil prices until March-April, when the harvest results are known and the new U.S. administration makes decisions on biofuels.