Russia in the current season can collect a record sunflower crop
the Majority of analytical agencies of Russia increased its forecasts of sunflower production in the country on data on high yield in the current season.
As of 19 September in Russia with 1.8 million ha or 21,5% of the area harvested 4.2 million tons of sunflower seeds with a yield of 2.29 t/ha, while in 2018 it was of 1.92 t/ha. the Rate of harvest thanks to the warm and dry weather is also twice that of last year.
Experts IKAR increased the forecast of sunflower production in the current season with 13 to 14 million tons, while SovEcon was estimated at 13.1 million tonnes, while Prozerno is 13 million tons, the Ministry of agriculture of the Russian Federation considers the oil crops will increase to 20 million tons, compared with 19.5 million tons in 2018.
During January-August 2019 Russia has increased in comparison with the corresponding period last year, the production of crude oil by 15% to 4,234 million tonnes, in particular sunflower by 18% to 3,376 million tonnes, rapeseed by 17% to 0,337 million tons, while soybean fell by 6% to 0,478 million tons.
the Increase in the production of sunflower and sunflower oil in Russia will increase competition in the black sea market in Ukraine, where the production of sunflower and sunflower oil may reach a record value.
Prices for sunflower oil continue seasonal decline and remain under pressure from falling markets, soybean and palm oil.
December futures for soybean oil in the USA following the price of soybean decreased by 1.3% to $650/t
Quotation of palm oil on the Malaysian stock exchange on Friday fell by 0.9% to 533,8 $/tonne, owing to lower-than-expected pace of exports.
On the black sea market of sunflower oil an increase in the supply amid falling demand increases the difference between the prices of supply and demand. Thus, the Ukrainian sunflower oil with delivery in November-December offer of $700/MT FOB, while the price demand does not exceed 680-685 $/t FOB. Buyers expect a further decline of prices for black sea sunflower oil due to increased yield of sunflower.
