The season-2020/21 could be rather “hot” for the market of sunflower and soybean meals, as the global supply will be record high, and the demand will depend on the further development of COVID-19 pandemic as well as the recovering of China after ASF outbreak, declared Vladimir Dvinskiy, broker of Atria Brokers within the online conference Soybean and meal market.
He supposed that the competition between Ukraine and Russia in the sunflower meal segment would be interesting to watch. USDA forecasted the record sunflower crops in both countries – 17 mln tonnes and 15.5 mln tonnes correspondingly in 2020/21 MY. For example, Russia took over a part of Ukrainian share of Turkish market of sunflower meal and increased the export of the product to Turkey by 17% year to year in October-April of 2019/20 MY.
“Ukraine decreased the export of sunflower meal to Turkey by 11% during the reporting period. The competition between two countries grows on European market as well. Russia actively supplies the product to Italy. Moreover, Russia increased the export of sunflower meal to Belarus by 39% in October-April of 2019/20 MY, while Ukraine decreased the supplies by 20%. It seemed that Ukraine preserved such important market as China and India. However, Russia shipped the first pilot batch of sunflower meal (2 thsd tonnes) to China in March 2020. Therefore, we need to stay focused”, - he summarized.