In the United States, the administration of President Biden agreed to increase the percentage of biofuels in gasoline and diesel. In Canada, rapeseed oil is classified as a raw material for the production of biofuels, and in Europe, the processing capacities of the oilseed complex are maximally loaded and continue to actively process sunflower and rapeseed.
Low demand puts pressure on sunflower prices
The sunflower oil market fell to the level of 1’100-1’150$ DAP Poland (border). Low demand for oil puts pressure on sunflower prices both in the direction of Eastern Europe and in Ukraine. Export markets in the direction of Bulgaria, Romania and Hungary reduced prices by 10-20 $/t compared to last week. Queues for unloading, formed at the factories of Eastern Europe, signal the oversaturation of the markets at the moment. The premium for virgin sunflower is kept at the level of 40-50 $/t.
The latest indications of buyers for sunflower:
| FOB Ukraine (ports on the Danube River) | 470-480$. |
| DAP Bulgaria | 535-545$. |
| CIF Bulgaria | 540-550$. |
| DAP Hungary (center) | 540-550$. |
Rapeseed prices continued to decline this week by an average of minus 20 € per tonne.
The latest indication of buyers for rapeseed:
| DAP Germany (western) | 530-540€. |
| DAP Germany (north port) | 555-560€ |
| DAP Slovakia (border) | 460-475$ |
Soybean prices also underwent a correction in the direction of Italy by an average of -10-15 €/t. There is limited demand in the direction of Slovakia.
The latest indication of buyers for soybean:
| DAP Ukraine (ports) | 415-425$ |
| Non-GMO and GMO DAP Italy (NW-East) | 535-545€ |
| Non-GMO DAP Slovakia (border) | 470-480$ |
| GMO CIF Turkey (port) | 540-545€ |
Recall that last week the main events in the markets of soybeans and rapeseed took place on the American continent. Late sowing of soybeans in Argentina has created risks of reducing its yield, which will have some support for the price of beans.
Remains of soybean oil was at its peak for the last 29 months due to reduced demand. However, in the United States, the increased demand for soybean oil for biofuels has caused a shortage of oil on the market, which will have some support for the prices of the oilseed complex.
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