Ukroliyaprom predicts further increase in oilseed production in Ukraine

Experts believe that this year the most profitable crop for growing in Ukraine will remain sunflower, which has a high profitability, since a noticeable drop in demand and prices for it is not expected.

According to estimates of the Ukroliyaprom Association, in 2021/22 MY the sunflower crop in Ukraine increased by 25.9% to 16.5 million tons, soybeans – by 22.7% to 3.4 million tons, rapeseed – by 15.4% to 3 million tons. while the world production of oilseeds, according to USDA estimates, in 2021/22 my will grow by 3.9% to 627.58 million tons, in particular sunflower – by 16.1% to 57.04 million tons, soybeans – by 4.2% to 381.8 million tons, although rapeseed production will decrease by 6.6% to 68.35 million tons.

However, experts note that a significant sunflower harvest in Ukraine and the world will not necessarily lead to lower seed prices. Recall that in the previous season, sunflower prices in Ukraine doubled, and in some periods reached 25-27 thousand UAH/ton. for 2021/22 MG, experts do not predict a sharp increase in sunflower prices, but they also do not expect them to fall.

Price formation is influenced by rising energy prices, demand for biofuels and food vegetable oils, which fluctuates depending on the spread of new strains of Covid-19 and the strengthening of quarantine restrictions. Now the situation is very changeable, but there will no longer be such a rapid increase in prices as last year, " said Stepan Kapshuk, General Director of Ukroliyaprom.

It is expected that farmers will continue to expand the area of sunflower sowing. So, in 2021, they increased by 2.2% compared to the previous year to 6.5 million hectares, and the yield increased by 22.3% from 20.6 C/ha to a record 25.2 C/ha. However, even despite the expansion of sowing areas, the sunflower harvest in Ukraine in 2022 is unlikely to exceed the figure of 2021.

Purchase prices for sunflower seeds due to the increase in the dollar exchange rate this week increased to 19700-21700 UAH/ton with delivery to the plant, depending on the oil content (46-50%). For high-oleic sunflower offer a premium of 500-800 UAH / ton.

Purchase prices for soybeans with GMOs remain at the level of 16000-16500 UAH/t with delivery to the plant, and for soybeans without GMOs – at the level of 19200-19400 UAH/t. against the background of the devaluation of the hryvnia, exporters increased the purchase prices for soybeans with GMOs in ports by 200-300 UAH/t to 16000-16200 UAH/t, and for soybeans without GMOs – to 19700-20000 UAH/t.