Large harvest of sunflower in Ukraine and Russia led to lowering of sunflower oil prices – expert




According to David Jackson, analyst of the company LMC International, large-scale harvest volumes of sunflower seed in Ukraine and Russia in the current year led to the situation that the price of sunflower oil on the markets started reducing compared to rapeseed and soybean oils. The expert expressed own opinion, while speaking at the conference "Fat-and-Oil Industry - 2011" on November 25 in Kiev.

He noted that such reduction of prices usually occurs every time when there is a jump in production volumes and may remain active until the beginning of next sowing season.

D.Jackson also presented the forecast of prices for vegetable oils in the nearest future. So, if petroleum prices remain at the same level as now, the price of palm oil and soybean oil will increase by nearly 100 USD/t. The prices for sunflower oil will be kept at lower level compared to soybean and rapeseed oils until the spring.

The expert noted that if the macro-economic indicators worsen, it will lead to reduction of petroleum prices, resulting in the decrease of prices for vegetable oils.