Purchase prices for sunflower seeds in Russia have sharply decreased

Forecasts of a large sunflower harvest in Russia and Ukraine in 2021 are confirmed, and the weather contributes to the end of harvesting, but sunflower prices have only grown since the beginning of the season and practically did not decrease under the influence of a seasonal increase in supplies.

As of November 10, 2021, in Russia, sunflower was threshed from 98% of the area, or 9.5 million hectares, and 15.1 million tons were threshed with a yield of 1.59 t/ha and corresponds to the USDA forecast of 15 million tons.

In Ukraine, as of November 4, 2021, Sunflower was threshed from 95% of the area (6.2 million hectares) and 14.7 million tons were threshed with a yield of 2.37 t/ha, while the USDA predicts a harvest of 17 million tons and a sowing area of 7 million hectares.

According to the fat and oil union of Russia, purchase prices for sunflower seeds in Russia have decreased by about 15% since the beginning of November to 33,000-35,000 rubles./ T (5 556-590 / t with VAT) and it is noted that since the beginning of the season, this is the first large-scale price reduction.

The reason for the decline was the decline in prices for sunflower oil for the week from the levels of F 1400-1430/ton FOB to 1 1360 / ton FOB, as well as a sharp increase in the cost of export duty, which from December the Ministry of Agriculture will increase by more than 40% to.276.7 per 1 ton of oil.

The duty came into effect on September 1, 2021, and it depends on the level of export prices for sunflower oil.

In Russia, from the end of last year until October 1, the maximum wholesale prices of sunflower oil plants in the amount of 95 rubles were also in effect./ L, as well as retail – up to 110 rubles./ L, which also limits the processing margin.

In Ukraine, purchase prices for sunflower for the week also slightly decreased under the pressure of lower export prices for sunflower oil, as well as an increase in sales from farmers and are at the level of 18600-19300 UAH/ton or (712-740 ПДВ/ton with VAT) with delivery to the plant for sunflower with an oil content of 46-47%.

The cancellation of the tender in Egypt for the purchase of vegetable oils due to high supply prices will also increase pressure on the prices of sunflower oil, especially against the background of an increase in the supply of cheaper Russian oil, since the purchase prices of sunflower in Russia are slightly lower and processors will be able to afford to reduce export prices for oil.