Sunflower prices may further fall under the pressure of the harvest in Russia

2019-10-04 12:06:45
Sunflower prices may further fall under the pressure of the harvest in Russia

Russia in the current season will collect a record harvest of sunflower in the range of 13.5-14 million tonnes, which has already led to lower purchase prices for oilseeds and sunflower oil on the black market.


Experts SovEcon last week increased compared to the August report, the forecast of sunflower production in Russia by 0.8 million tons to 13.9 million tons, which exceeds the previous record 2018 - 12.8 million tons.


the Reason for this was a record yield in the Central black earth region, where 60% of the area harvested sunflower with a yield of 2.8 t/ha, which is 20% higher than togoro. In the Volga region at the start of the harvest yield is also a record.


In Russia on 2 October from 3.2 million hectares or 38% of the area harvested 7 million tonnes of sunflower with a yield of 2.16 t/ha (2018 – 1.74 t/ha).


Prices for Ukrainian sunflower oil will remain at the level 675-685 $/t FOB for shipments in November-January, however, they may soon fall as more sentences amid low demand.


Quotation of sunflower oil was supported by yesterday's rise in prices for soybean oil in Chicago for 2% to 657,8 $/ton, due to increased purchases of soybeans by China and increasing recycling in the United States.


In Ukraine, as of 2 October from 4.57 million hectares or 78,3% of the area harvested to 10.65 million tonnes of sunflower with a yield of 2.33 t/ha (2018 – of 2.16 t/ha). The purchase price of the plant remain at the level of 8000-9000 UAH/t Processors have lowered prices because they do not have available warehouse space for storage of raw materials. However, amid the sharp decline in prices of individual processors has resumed the purchase on the basis of the Franco-economy.


the appreciation of the dollar on the interbank market did not affect the purchase price of sunflower, as the processors keep their growth through the predicted drop in prices of sunflower oil. The margin of processing of sunflower significantly exceeds togoro, so processors are able to use cheap raw materials and sell the oil at a high price.


Revenues oil on the market in the near future will significantly put pressure on prices, especially amid low demand.

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