Ukraine: Processors are trying to reduce sunflower seed prices but hampered by the rise in sunflower oil prices

Last week, sunseed prices in Ukraine rose to 25500-26200 UAH/t with delivery to the plant amid limited supply and the need for plants to fulfill contracts for the supply of oil. On Monday, the processors tried to lower prices to 24500-25000 UAH/t following the decline in vegetable oil prices caused by the fall in oil prices by 8% over the week. But the lower-than-expected harvest is forcing processors to keep prices high, especially when buying large quantities. As of October 18, Ukraine harvested 9.3 mln tons of sunseed from 4.5 mln hectares or 91% of the area, yielding 2.07 t/ha, so the harvest forecasts were reduced to 10-10.5 mln tons, although USDA estimates it at 12.5 mln tons. Growth of prices for sunflower oil supports the price of sunseed at a high level and helps to increase the processing margin. During the week, the price of sunflower oil rose by another 20-30 $/t to 1050-1060 $/t, and for meal – by 5 $/t to 220-225 $/t with delivery to the ports of the black sea. ...