Turkey suspends sunflower purchases pending new reference price

Sunflower purchases in Turkey have effectively been suspended pending a decision on the new reference price, which is currently around $580/t.

 

Local producers insist on increasing it to $800–1000/t. Such a revision could significantly increase the actual costs of importers even after the planned reduction of the import duty rate to 12% from October 1.

 

According to the assessment of Sunseedman owner Veysel Kaya, at a reference price of $800–1,000/t, the duty would be about $95–120/t. For comparison, at an import contract at about $630/t, the duty would be about $75/t.

Thus, an increase in the calculated price may partially offset the positive effect of the reduction in the duty rate and worsen the economics of sunflower imports to Turkey.

 

The final level of the new reference price and the timing of its announcement are not yet known. Until a decision is made, the activity of Turkish buyers in the sunflower market will remain limited.

 

The suspension of purchases by Turkey may further increase the pressure on sunflower prices in the Black Sea region, primarily in Romania, the Russian Federation and Ukraine, where the seasonal supply of the new crop continues to grow.