July 22 2004, 13:22 APK-Inform

Russian vegoil market experts forecast further drop of sunoil prices

According to Russian vegoil market operators, a drop of prices for sunflower oil in the country continues. Average selling price on an EXW basis has now dropped to the level of 17,800 to 18,000 roubles per tonne (29 roubles = $1).

Specialists say no sunoil shortage in expected in August and therefore the price decline is likely to continue.

The crushing plants are expected to continue active processing of sunflower seeds in August, until the stock of the raw material has been used up completely.

Purchasing activities of sunoil exporters on FOB basis have also been minimal. New contracts are not being concluded due to absence of end users' demand on the world market.

However, the interest towards purchases of the 2004 crop sunflower seeds is very high, the market experts said. The starting prices for new crop seeds continue to grow. Market participants are now oriented at the price range of 6,000 to 6,500 roubles per tonne (delivery not included).