On the European market, there is a fairly high saturation of vegetable oils for the period May-June 2023. Purchases of products have slowed down quite a bit in most directions, and fewer and fewer offers are coming from Ukraine, declared Vassil Vassilev, the general director of the Bulgarian company Agrivia Oil, to APK-Inform.
"In Bulgaria and Romania a few weeks ago, there was some "confusion" among market operators due to the fact that neighboring countries with Ukraine introduced various internal restrictions on the import of grains, oilseeds, vegetable oils, and other agriproducts. But last week, Bulgaria and Romania also decided to introduce a ban on the import of Ukrainian agricultural products. This, however, not only did not help farmers to solve the problem of low prices and high stocks, but on the contrary, the local crushing industry to lower its buying ideas, due to the plummeting oil prices in the Black Sea region," said the head of Agrivia Oil.
Such a situation could either encourage local farmers to sell their produce in the next couple of months at whatever price they can get on the market, or it could result in record-high stocks at the start of the new season if farmers decide to refrain from selling.
According to Agrivia Oil estimates, the sunflowerseeds crop in the new season may remain mainly unchanged at 2 mln tonnes in Bulgaria and 2.8 mln tonnes in Romania, which may lead to a record high supply in S&D in both countries – more than 6 mln tonnes (including carryover stocks).
"We also expect that the June-July period is less like to bring us higher prices in both sunflowerseeds and sunflower oil markets in the region, as most processors have sufficient stocks of both sunflowerseeds and rapeseed until the end of the current MY. At the same time, we also expect the continuation of the "confrontation" between farmers and the processing industry in the coming months, which will not facilitate work on the market, and will not make it more transparent or predictable for all the players locally," said V. Vassilev.
The general director of the Agrivia Oil company will speak at the international conference "VegOil Trade", which will be held on June 8-9 in Rotterdam. The topic of his report is "The European market of vegetable oils. Competition. Opportunities".
Vassil Vassilev has a Master's degree in International Business and Finance and was a CFA Charterholder, with extensive experience of over 15 years as a sun oil and sun meal trader, well known in the international markets.
Agrivia Oil is a leading trader in the region of Bulgaria and Romania with 100-120 thsd tonnes of sunflower oil traded volume per year, which is part of one of the largest agricultural holdings in Bulgaria, Agria Group Holding.
You can find a detailed agenda of the international conference «VegOil Trade» on APK-Inform website.
Delegates from 23 countries have already registered to participate in the "VegOil Trade" conference – representatives of trading and brokerage companies, processors, holdings, industry associations, etc.
Hurry up to Register!