Active export support sunflower prices at a high level
the Decrease in yield of sunflower in major producing countries of the black sea region intensified competition for raw materials not only between processors of Ukraine and Russia, but also between exporters, who in spite of a high export duty has stepped up purchases.
the Increase in exports supported the prices of the sunflower, which is 70-80% higher than last year's level, primarily due to the sharp increase of world prices for vegetable oil by 30-40%, increase of the dollar against the hryvnia by 10-12%, and reduce sunflower yield by 20%. Ukraine this year has harvested 13.1 million tons of sunflower, and Russia – 13.2 million tons, whereas last year, each country has a harvest at 15.5 million tons.
With the start of the season purchasing prices for sunflower 380-400 $/t or 10500-11500 UAH/ton rose to 660-670 $/t or 18600-19000 UAH/t with delivery to the plant.
According Refinitiv Trade Flows during the September – November 2020 Ukraine increased exports of sunflower compared to the same period last year almost doubled to 190 thousand tons, and Russia – 95% to 500 thousand tons, according to the State Federal center for grain quality assessment.
the Reason for the sharp growth of exports has been the decline in sunflower production in Bulgaria, Romania and Turkey, who this season became the main buyers of Ukrainian and Russian sunflower.
currently, the export duty on sunflower seed in Ukraine totals 10%, and in Russia of 6.5% but no less than a 9.75 €/t. However, from 1 January, the Russian government plans to increase export duty on sunflower seeds to 30%.
the Association "Ukroliyaprom" appealed to the Ministry of economy, Ministry of Finance, the State tax and customs services of Ukraine with the request to accelerate the introduction of special measures in the form of additional duties when exporting sunflower seeds to EU countries with a volume of 100 thousand tons, because the market of sunflower in Ukraine has developed an extremely tense situation.
