USDA forecasts record global consumption of sunflower

According to experts USDA, world sunflower seed production will decrease from 51,52 million tonnes in 2018/19 MG to 50,952 million tonnes in 2019/20 MG, in particular in Ukraine, which is the world's largest producer of this crop, the harvest will be reduced from 15 to 14.8 million tonnes Second largest producer – Russia will also reduce the gross sunflower harvest from 12.71 to 12.5 million tons due to reduced acreage from 7,944 to 7.85 million hectares.

the Global consumption of sunflower will grow from 50,947 million tons to a record 51,383 million tons, resulting in carry-over stocks will decrease from 3.29 to 2.62 million tons.

India and China boost demand for sunflower oil compared with soybean and palm. Therefore, the market of vegetable oils premium sunflower oil has increased more than in other oils.

Futures on palm oil exchange in Malaysia fell yesterday to 476,8 $/ton, and soybean oil in Chicago traded at 589,5 $/t

In the black sea region against the background of increasing demand and reducing the sentences of the bid prices for sunflower oil rose by $5/MT to 680-685 $/t FOB and the demand by 3-5 $/t to 665-670 $/t FOB for shipments in may-June.

the deficit of the sunflower and the rising price of oil intensifies the struggle of processors for large quantities of raw materials, although the low refining margin makes to lower the purchase price. Now with delivery to the plant processors offer 10800-11200 UAH/t, while for large batch ready to pay 10800-11000 RUB/t's on the French economy.

the Fall in world prices for soybeans and oil will put pressure on the market of sunflower oil and limit the growth of prices in the short term.

it is Unlikely that next month will be resolved trade disputes between the U.S. and China, world prices for soybeans will remain under pressure. China in response to the actions of the US administration introduces June 1, 25% duty 5,000 American goods worth $ 60 billion.