This year, as well as last one, the situation on the oil market is complicated. Last season, both producers and consumers got burned when the sunflower oil reached 1700 $/ton on the FOB basis in March 2021, and by June dropped in price to 1060 $/ton.
This was stated by Prometey’s analytics and monitoring department, ProAgro Group reports, citing Latifundist.com.
It was noted that consumers this year are clearly demonstrating a reluctance to vote for high purchase prices.
“Vegetable oil producers are trapped. Farmers do not want to sell sunflower, expecting the peak prices of last season 23-25 thousand UAH per ton. The high price of grain sales allowed them to accumulate funds and not to hurry with the sale of sunflowers. Importers strongly refuse to buy expensive oil in large quantities, not allowing oil producers to increase the purchase price for raw materials,” commented Prometey.
According to experts, it is very difficult to predict further developments.
