Premium for high-oleic sunflower seed growing in Ukraine along with restoring demand for oil - APK-Inform

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APK-Inform

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According to APK-Inform, premium for high-oleic sunflower seed has increased sizable since the start of 2021/22 MY in Ukraine due to the growing price of sunflower oil on the export market.

As of January 2022, the premium for high-oleic sunflower seed is varying at 20-35 USD/t compared to 10-30 USD/t at the start of the season. At the same time, the premium for high-oleic sunflower oil over the conventional oil is reaching 200 USD/t.

Among the key factors that are pushing the premium up, we can emphasize lower production of high-oleic sunflower seed in Ukraine in 2021, slowdown of processing and smaller supply of high-oleic oil in a time of growing demand in the world, particularly from Europe. Additionally, reserved farmers’ sales of sunflower are limiting production and export of sunflower oil.

APK-Inform estimates high-oleic sunflower seed crop in Ukraine at 900 thsd tonnes in 2021, down 11% y/y. Planted area under the oilseed decreased by 21%. Lower premium for high-oleic sunflower seed in 2020/21 MY amid decline of consumption of high-oleic sunflower oil in HoReCa due to the pandemic  resulted in weaker interest of farmers to cultivation of high-oleic sunflower seed in the current season.

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