The export price of сrude sunflower oil can reach $700 per ton
In March 2019, it is planned to ship 3 thousand tons of Ukrainian crude sunflower oil to the specialized seaport of Chernomorsk.The cost of crude sunflower oil is estimated at $668 per ton, according to datafrom the independent information agency S & P Global Platts, as of January 28, 2019.This is $6 more than the day before. And the price continues growing. This is due to a decrease in supply. While the demand of the main buyers, Iraq and India, remains high. Also, the market is gradually increasing activity from China and Europe.
Platts experts predict a rise in the value of Ukrainian crude sunflower oil to $700 per ton, if the situation in the FOB market does not change.
Some manufacturers that process sunflower seeds will experience a shortage of raw materials for production. This is due to the fact that farmers have reduced sales of sunflower seeds, in anticipation of a higher price. In addition to this, heavy snowfall complicated the transportation of seeds, which are delivered to the plants by trucks. And this is 70% of the total raw material supplied.
Large plants that do not have a shortage of raw materials for production, also began to limit sales. Although their current stocks of seeds and finished products are enough to fully cover existing demand for 3-4 months.
However, experts are inclined to believe that in February the market will receive a sufficient amount of sunflower seeds to cover existing demand. This may provoke the decreasing of crude sunflower oil prices in Ukraine.