Russia: Domestic sunflower seed prices may continue to decline

Published 2023년 9월 29일

Tridge summary

According to analyst Kirill Lozovoy, the domestic prices of sunflower, the only oilseed crop experiencing declining prices, are expected to reach a low of 20 thousand rubles per ton. This is due to the lack of support from the dollar exchange rate for oil extraction plants and farmers, as well as a decrease in export prices and demand from processors. Lozovoy also discussed the harvest estimates for major oilseeds, including sunflower, soybeans, rapeseed, and oil flax, and highlighted the reorientation of vegetable oil supplies to China and India. Additionally, he mentioned the implementation of a new export duty tied to the ruble exchange rate, which could negatively impact the economy of companies involved in soybean and rapeseed oil production and export.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Currently, sunflower is the only oilseed crop whose domestic prices are declining. According to Kirill Lozovoy, an analyst at the information and analytical agency OleoScope, prices are determined based on export quotations for oil and the dollar exchange rate. “Now we are waiting for sunflower to “dive” to the level of 20 thousand rubles/t,” said the expert during the conference “Agroinvestor: PRO crop production”. The decline is due, firstly, to the fact that the dollar exchange rate does not provide support to oil extraction plants, and, accordingly, to farmers. Secondly, the export price of oil is decreasing. In addition, demand from processors is not very active due to long-term contracting already in place. During the conference, Lozovoy also said that this calendar year the harvest of major oilseeds could reach 27.4 million tons, of which sunflower - 16 million tons (about 16.4 million tons a year earlier), soybeans - a record 6.1 million tons (slightly less than 6 million ...

Source: Agro2b