Analysts forecast sharp growth of sunflower seed supply on the global market

Source

APK-Inform

6122

In 2021/22 MY, farmers of Ukraine and Russia harvested impressive sunflower seed crop. APK-Inform estimates Ukrainian production at record 16.5 mln tonnes compared to 13.8 mln tonnes last year. Russian crop amounted to 13.8 mln tonnes, down only 50 thsd tonnes from previous maximum.

However, the market has not seen yet the expected growth of production and export of sunflower oil. Reserved farmers' sales of oilseed feedstock was the main reason for this. Additionally, in the first months of the season, the activity of importers of sunflower oil was low, as they had expected more attractive prices due to the record sunflower seed crop in the Black Sea region.

As the result, current sunflower seed processing is lower than potential level in Ukraine and Russia. Additionally, there are high accumulated stocks of the oilseed.

Today, the timing of active sales of sunflower seed by farmers is the key question of the global sunflower complex. Oil World supposes that there are no more reasons to keep sunflower seed sales restricted in anticipation of more attractive prices for farmers, as the stocks are very high, Argentina has started harvesting its sunflower seed crop and the production of vegetable oils is expected to increase on the global market in coming months.

Higher sunflower seed crop in Southern Hemisphere, that will enter the  market soon, as well as the high stocks in Northern Hemisphere may push farmers to start selling in short term, Oil World supposes. The experts forecast that sunflower seed supply will increase to 41.2 mln tonnes in January-August 2022, up by 7.2 mln tonnes compared to the same period of 2021.

Detailed information about the development of global and Black Sea markets of sunflower seed you can get at an international conference Fat-and-Oil Industry – 2021/22 that will be held in Odessa on March 17.

 

Advertising

Enter