The USDA increased the estimate of world production of sunflower

In the USDA report for February forecast of world production of sunflower increased to of 54.44 million tonnes by 3.88 million tonnes higher than the figure recorded the previous season. In particular, for Ukraine it increased by 0.5 million tonnes to 16 million tonnes.

According to the Ministry of agriculture of Ukraine, in 2019 domestic farmers increased compared to the previous year, sunflower seed production by 7.8% from 14,165 to 15,268 million tonnes, while the total harvesting area decreased by 3.4% to 5958,6 thousand hectares, whereas the average yield of 2.56 t/ha.

To Russia with increased production of sunflower compared to the previous year with a record 12.7 to 15.3 million t forecast of exports in the current season was increased from 350 to 450 thousand MT compared to 334 thousand tons in the previous my.

Due to the reduction in the production of palm oil increased demand for vegetable oils facilitates increasing the production of sunflower oil. Therefore the consumption of sunflower in comparison with last year will increase by 3.64 million tons to 53.9 million tons, resulting in carry-over stocks will remain at level of last year to 2.66 million tonnes.

Forecast carryover stocks of sunflower seed in Russia in comparison with the assessment of January decreased from 1086 to 947 thousand tons, which is still significantly higher than the level of the previous season, 357 thousand tons and the average 5-year rate of 287 thousand tons.

the Purchase price of sunflower in Ukraine and Russia rebounded after falling early in the season and in January reached the highest level thanks to the rise in price of sunflower oil to 780-820 $/t FOB. However, a gradual decline in prices for sunflower oil at 50-60 $/t on the background of seasonal increase proposals sunflower producers in anticipation of the spring works and will continue to put pressure on purchasing prices for sunflower.