Spread between Ukrainian and Russian sunflower oil export prices increased sharply - APK-Inform

Source

APK-Inform

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According to APK-Inform, as of September 10, the average bid prices of Ukrainian sunflower oil reached 7-years high and totaled 915 USD/t FOB.

Moreover, the prices of Ukrainian oil exceed the export prices in Russia by average 60 USD/t that also is the maximum. Previously, the spread at 50-55 USD/t was fixed in December 2019 and January 2020. The average spread between Ukrainian and Russian sunflower oil was at 15 USD/t over the last 3 years.

Mainly, the high spread is based on sharp appreciation of sunflower oil in both Ukraine and Russia due to unfavorable weather. Additionally, impressive export of sunflower oil from Russia in 2019/20 MY led to record low stocks of the product. APK-Inform estimated Russian stocks of sunflower oil at 43.8 thsd tonnes, down 67% compared to the year ago level. Thus, the number of offers of Russian sunflower oil is limited, and the prices are mainly declarative.

APK-Inform forecast the export of Ukrainian sunflower oil to reach 6.2 mln tonnes in 2020/21 MY (-6% y-o-y), Russian sunflower oil - 3.8 mln tonnes (-8%).

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