Purchase prices for sunflower seeds at the start of the season continue to grow

Ukraine and Russia have started harvesting sunflower seeds, which are projected to yield 20-30% more than in the previous season. Weather conditions in the Black Sea region were mostly favorable, although in some regions of Russia there was a drought. However, the decrease in yield in Russia will be offset by a 14% increase in sowing areas.

USDA experts lowered the forecast for sunflower production in Russia by 1 million to 15.5 million tons (13.3 million tons in 2020) and increased it for Ukraine by 0.8 million tons to 17.5 million tons (14.1 million tons in 2020), which additionally supported prices.

In Ukraine, against the background of a rise in the cost of sunflower oil, purchase prices for sunflower during the week increased by another ще 10-20/ton to 16000-16300 UAH/ton or 600-610 грн/ton (including VAT) with delivery to the plant, which is almost 50% higher than the price level at the beginning of the previous season, which was then 10500-11500 UAH/ton or 400-420 $/ton.

Following the palm oil market, prices for sunflower oil increased by 3 30-40/ton over the week to F 1280-1320/ton FOB, which is 60-65% higher than the level of prices for Ukrainian sunflower oil in August 2020, which were then 7 770-780/ton FOB (F 720-730/ton FOB in August 2019).

Due to the favorable weather, sunflower production forecasts have also been raised for other countries of the Black Sea region, in particular for Romania – up to 3 million tons, Bulgaria – up to 2 million tons (30% more than last year), Turkey – up to 1.8 million tons (17 more than last year).

Against the background of rising prices of vegetable oils, the main importers are reducing the volume of purchases and choosing the cheapest positions.

According to experts of the Solvent Extractors’ Association of India, India in July 2021 reduced the import of vegetable oils by 5.3% to 917.3 thousand tons compared to June, in particular sunflower – from 175.7 to 71.8 thousand tons, palm – by 20.7% to 465.6 thousand tons, but increased the purchase of soybean oil from 206.2 to 379.89 thousand tons. in general, in the current season (November – July) India it imported 2.23 million tons of soybean oil, 1.52 million tons of sunflower oil and 5.61 million tons of palm oil, including 2.8 million tons from Malaysia and 2.41 million tons from Indonesia.