Sunflower seeds: exports from Russia hit 20-year record

January 17, 2020 at 10:56 AM , Der AUDITOR
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KIEV/MOSCOW. The rise in domestic demand coupled with the situation in the global market is driving up prices in the Ukraine and in Russia. Export demand is claimed to be very high in Russia.

Rising prices in the Ukraine

Prices have risen steadily in the Ukraine since the beginning of January. This trend is conditioned by the fierce competition between the different processors and the limited amount of offers available for the oilseed just after the holidays. As the recently issued FAS World Markets and Trade report for oilseeds indicates domestic demand is projected to rise to 15,35 million metric tonnes in 2019/2010 (2018/2019: 14,95 million mt). The rise the global prices of sunflower oil is lending additional support to the market. Prices have risen sharply by more than EUR 18.00 per metric tonne since the end of December with sunflower seeds currently trading in a range of EUR 355-392 per tonne (UAH 9,500-10,500/mt) CPT, depending on supplier.

Differing estimates in Russia

Prices have also stadily risen in Russia since December. While purchase prices ranged at EUR 262-269 per metric tonne in central Russia last year (RUB 18,000-18,500/mt), they now exceed EUR 276 per metric tonne (RUB 19,000/mt).  Market players also state that export demand is very high as stocks need to be replenished in the global market. Russia has in fact exported more than 300,000 metric tonnes of sunflower seeds since the start of the marketing year in September. This is the highest figure witnessed in 20 years. Some market players believe that exports will even exceed 600,000 mt in 2019/2020. FAS, however, rather estimates exports at 350,000 metric tonnes, which is still an increase over the 345,000 metric tonnes exported in 2018/2019. FAS, in addition, estimates production at 15.3 million metric tonnes. Rosstat has, however, recently released more a more conservative revised production estimate of 15.1 million metric tonnes.

 

Sunflower seeds, oilseeds, CPT

Country

Dec 2019

Jan 2020

Ukraine

EUR 373/mt (UAH 10,000/mt) 

EUR 392/mt (UAH 10,500/mt)

Russia

EUR 262/mt (RUB 18,000/mt)

EUR 276/mt (RUB 19,000/mt)

Trade sources

 

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