September 23, 2011

Ukrainian oilseed prices to fall

With the alleged introduction of export duties on oilseeds and sunflower oil, Ukrainian oilseeds market sees a fall in prices, according to analysts from UkrAgroConsult.

The centre said in a statement that the current week had started with talks about the introduction of export duties on rapeseed, soy and sunflower oil. However, as in summer, there is no bill registered in the Verkhovna Rada, Ukraine's parliament.

Nevertheless, experts said that many companies had suspended the purchase of oilseeds, while lowering prices for them.

It was reported that the introduction of these duties was stipulated in Ukraine's draft state budget for 2012, which proposed setting the following export duties: on soy at 12%, but not less than US$45 per tonne, on rapeseed at 9%, but not less than US$20 per tonne, and on sunflower oil at 5%, but not less than US$57 per tonne.

However, the draft state budget for 2012 does not have any information about the duties, which added more uncertainty on the market.

As of September 20, the price of sunflower seeds in Ukraine got stabilised at US$475-500 per tonne (US$487-500 per tonne a week ago) EXW and US$500-512 per tonne CPT for farmers, and was US$50-62 per tonne lower for mediators.