Login ID:
Partner Login
Contact Us : 7066511911

Black Sea Sunflower Oil Prices Hit 7-month High on Tight Supply

1 Aug 2020 5:38 pm
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (Commodities Control) - Sunflower oil, FOB Black Sea, at $805/mt on July 31, the highest since $795/mt on January 14, on tight supply of old crop oil.

The new sunflower crop in Ukraine is due in mid-August and old crop seed and oil availability is at seasonal lows. Seed supplies at farms, crushing plants and silos were 1.2 million mt in July, a market source said. Typically, seed supply drops in August to 500,000-600,000 mt, the annual low, before recovering in September and October.

Consequently, sunflower oil FOB Ukraine prices are in backwardation, with nearby loading at a $30-$40/mt premium to deferred positions for loading new crop oil.

"Terminals are empty and plants have really small volumes -- there's no supply at all," a trader said. "Soybean [prices], palm oil [prices] and empty stocks of sunflower seed are boosting the market but it is a matter of time until participants see that new crop [sunflower oil] is already on the market and prices will drop significantly."

The seven-month high milestone signals the V shape recovery of the Ukrainian sunflower oil market to pre-coronavirus levels. Lockdown-induced demand destruction and the Russia-Saudi crude oil price war weighed on the vegetable oil market, pressuring sunflower oil prices to nosedive in the first three months of 2020.

Trading for old crop oil on the spot market has been illiquid in recent weeks, with attention focused on the new crop.

"There's a very good sunseed crop and a very good corn crop in Ukraine," a Ukraine-based source said. "There's very good conditions for the crop in Central and Eastern Ukraine and the dry winter meant a lot of fields reseeded with spring crops; and sunseed is the most profitable crop, so the planted area is higher than reported," the source added.

The crop is likely to reach around 16 million mt but could even be 16.5 million mt, the source said. A 16 million mt crop would be 10.7% higher than the five-year average, according to data from the US Department of Agriculture.

(Commodities Control Bureau)

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Top | Post Comment  

Latest Market Commentary
India 2020-21 Kharif Oilseed Sowing Up As On Aug 07,202...
USDA Confirms Biggest U.S. Soy Sale to China Since June...
BMD CPO Marks 3% Weekly Rise on Lower Stock Forecast
Soy Complex Soybeans (CBT) Losing Momentum Near Ove...
Soy Complex Soybean Oil (CBT) Trending Higher / Nex...
Top 5 News
India 2020-21 Kharif Oilseed Sowing Up As On Aug 07,202...
India 2020-21 Kharif Crop Sowing As On 07-08-2020
USDA Confirms Biggest U.S. Soy Sale to China Since June...
India 2020-21 Kharif Pulses Sowing Up 4.2% As On Aug 7
Chana Extend Rise in Major Mkts Tracking Firm Futures
Top 5 Special Reports
USD/INR (Aug 20) Consolidating Below Key Resistance ...
Flour, Maida Export From India Not Viable Despite Recen...
USD/INR (Aug 20) Consolidating Below Key Resistance ...
USD/INR (Aug 20) Testing Resistance Near 75.50 (the ...
USD/INR (Aug 20) Testing Resistance Near 75.50 (the ...
Copyright © CC Commodity Info Services LLP. All rights reserved.