The price of sunflower under pressure to reduce production
the new USDA report forecast rapeseed production in the black sea countries in the 2017/18 season increased, whereas the harvest of soybean and sunflower reduced.
the Forecast of sunflower production in Ukraine reduced by 500 thousand tons to 13 million tons, while in Russia it remained unchanged at 11 million tonnes. In total the black sea countries will gather 26.9 million tons of sunflower seeds.
the Ministry of agrarian policy reported that as of 10.11.17 in Ukraine with 5.8 million hectares (98% of plan) produced 11.6 million tons of sunflower seeds. The average yield of 1.99 t/ha, and the forecast of gross yield remains at the level of 12 million tonnes, significantly below the USDA estimates. This difference is due to the practice of understating declared volumes of production of sunflower for seed sales for cash, which is clearly seen on the data of production of seeds and oil in Ukraine.
To Russia with 5.6 million hectares (71,7% of the plan) harvested 8.6 million tonnes of sunflower seed yield of 1.54 t/ha (in 2016 it amounted to 1.58 MT/ha).
with the decline In production of sunflower processors rapidly increase prices in order to attract additional volumes of raw materials. Despite the strengthening of the hryvnia 1.5%, during the week, the procurement price of sunflower in Ukraine has risen to 10900-11200 UAH/t with delivery to the plant or 10700-10800 UAH/MT on an FCA - farm.