This week, sunflower purchase prices in #Ukraine continued to rise, reaching levels typical for October-November. This is due to increased purchases by processors, who could sell sunflower oil at high prices.
Over the week, the cost of sunflower oil with a 52% oil content increased by 1,000-1,500 UAH/t to 27,500-28,000 UAH/t with delivery to the plant. At the same time, not all enterprises are making purchases, and many small processors are idle due to the inability to sell expensive sunflower oil.
Farmers should be careful, as the strengthening of the hryvnia exchange rate, as well as the decline in prices for oil, #palm and #soybean oil, may soon lead to a drop in sunflower oil prices, which, in turn, will cause a collapse in sunflower prices. In addition, due to the low processing rates in the current season, sunflower stocks on farms remain quite high.
According to Trading Economics, amid falling palm oil prices, the average price of sunflower oil delivered to buyers fell by 2.4% in a week to $1,274/t, almost returning to the level of the beginning of the year.
Demand prices for sunflower #oil in Ukraine have increased by $20-30/t to $1,080-1,100/t with delivery to Black Sea ports, however, demand and supply volumes remain low.
On the Bursa exchange in Malaysia, March palm oil futures were trading at 4,191 ringgit/t or $943/t during the week. Since the beginning of the year, the price of palm oil has decreased by 9.5% due to reduced export demand.
According to estimates by Intertek Testing Services and AmSpec Agri Malaysia, palm oil exports from Malaysia fell by 18.2–23% between January 1 and 20.
March soybean oil futures on the Chicago Board of Trade (CBOT) traded steady at $991/tonne (+11% month-on-month) during the week, supported by speculative soybean price increases. The market is awaiting the Trump administration's decision to impose tariffs on China and Canada, which could significantly impact U.S. trade relations with these countries and impact soybean and soybean oil prices from February 1. 🇨🇳 The approaching Chinese New Year (January 29 to February 5) will reduce global demand for vegetable oils, which will increase pressure on quotes.
Trump's statements about increasing oil production to increase pressure on Russia have reduced oil prices by 3.8% in a week. This, in turn, may increase pressure on vegetable oil prices in the near term.
