Analysts predict a decrease in prices for Ukrainian sunflower oil - 17.03.2020
Vegetable oil prices, which are most dependent on oil prices, came under strong pressure yesterday from falling stock indexes and oil prices due to the Covid-19 pandemic.
It is reported by Grain Trade.
Thus, prices for Ukrainian sunflower oil remain under pressure from neighboring vegetable oil markets. Buyers reduce demand in anticipation of further quotations reduction, which is why demand prices fell to $ 630-650 per ton FOB, while offer prices remain high at $ 655-685 per ton FOB, depending on delivery time.
According to the report, as a result of the fall in the vegetable oil markets, the premium for sunflower oil rose to $ 100 per ton in comparison with soybean and up to $ 130 per ton in comparison with palm.
“This indicates that prices for sunflower oil will begin to drop if palm and soybean oil prices do not recover in the near future,” analysts said.
At the same time, the news about the abolition of quarantine by China and the restoration of enterprises, as well as the absence of a coronovirus in India, allows traders to hope for a restoration of demand for vegetable oils in the near future.
Recall that the export of sunflower oil from Ukraine to the EU in the current MY may be in jeopardy.