Increased production lowers prices on sunflower
According to the March report USDA, world sunflower seed production in the current season will grow by 8% to of 51.46 million tons.
compared To 2017/18 MG in the major producing countries harvest will increase as follows:
Russia – 22% to 12.71 million tons,
EU – 2% to 9.9 million tonnes.
- in Ukraine by 10% to 15 MT,
sunflower oil Production will grow by 6% to 19.45 million tonnes, in particular:
Russia – 15% to 4.75 million tons,
EU – 2% to 3.72 million tons.
- in Ukraine – by 6% to 6.23 million tons,
Production of sunflower seed meal will increase by 6% to 20.86 million tonnes, in particular:
Russia – 15% to 4.72 million tons,
EU – 2% to 4.75 million tons.
- in Ukraine – by 6% to 5.99 million tons,
this season on the background of increasing world production of vegetable oils has fallen to a minimum, particularly on the palm, which in October fell to 470 $/MT, then rebounded in February to 567 $/t, however, fell back to 518 $/t Followed sunflower oil in Ukraine fell from 675-685 $/MT FOB in February to 660-665 $/t FOB in March.
as a Result of falling prices for sunflower oil and the strengthening of the hryvnia at 6.5% for the month, the purchase prices for sunflower seeds in Ukraine decreased by 700-800 UAH/t to 10300-10400 UAH/t with delivery to the plant and 9500-9700 UAH/t on the French economy. The rise of the dollar on the interbank market to UAH 27/$ soon will support purchase prices for sunflower.
the Increase in production compensates for the demand for sunflower oil, which gradually grows and keeps prices from falling further. The welfare of the citizens of India and China increases consumption high quality sunflower oil, so that the difference between prices and palm oil will continue to grow. If in 2007/08 India was not even in the TOP 10 buyers in 2017/18 MG she became the world's largest importer of sunflower oil. In second place was the EU in 2007/08 was a leader in the import, the third – China, which in 2017/18 MG was not in the TOP 10.