Rains On Brighton Beach Us Rainfall Slowed Down The Harvest Of Soybeans And Stopped The Fall In Prices For Ukrainian Sunflower

The price for the Ukrainian sunflower oil on the FOB-Black Sea increased by $5/t, to $660-665/t, according to the Grain Trade, Ukrainian electronic grain exchange.

The fall in prices for vegetable oils has stopped, traders state. It all began with powerful rainfalls in the States. They slowed down the harvest of soybeans.

At the end of last week, the Americans harvested only 38% of the planned area. For comparison, at the same time in 2017, 47% were already harvested, and over the past five years, by the middle of October, 53% of the land under the soybeans were mowed, on average.

This slowdown is immediately reflected in the USDA latest report, quotes for soybeans and the soy oil on the Chicago stock exchange has gone up immediately, up to $325/t and $655/t, respectively.

However, next week, the predicted dry and warm weather will begin to put pressure on prices again.

Anyway, stopping the fall in prices for vegetable oils will also keep the decline in purchase prices for Ukrainian sunflower. At the same time, individual processors, taking advantage of the situation, raised them by 50-100 UAH/t, to 10.1-10.5 thousand UAH/t with delivery.

At the same time, Ukrainian soybeans still have a low export demand, so there is no rush among domestic processors. They are less likely to take it, choosing high protein beans. Because of this, soybean purchase prices are falling.

In the port, for export from the country the GM soybeans can be sold for $340/t, and to an internal processor, they sell them for $390/t with delivery. And basically, the processing plants take soy directly from agricultural producers, so, the intermediaries are practically not interested in it.

As we wrote earlier, prices for sunflower and oil from it have dropped to their lowest level since 2009, and the record soybean harvest was expected from the US this year.