Sunflower prices in Russia fell for the first time since autumn last year

Published Feb 27, 2023

Tridge summary

Sunflower prices in Russia have experienced a decline for the first time since last year's fall, with a decrease of 25 rubles, bringing the price to 29 thousand rubles per ton in the European region. This drop is attributed to a slowdown in purchases by oil refineries and an anticipated increase in supply, coupled with record stocks of 2.8 million tons. The decrease in export prices and the anticipated export duty on sunflower oil in March are expected to further pressure the cost of sunflower seeds in Russia. The market's direction remains uncertain, with factors such as the exchange rate of the ruble against the dollar, production figures, and the profitability of oil refineries playing a role in the price dynamics.

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

Original content

For the first time since the fall of last year, sunflower prices in Russia began to decline - last week in the European part of the country they dropped by 25 rubles, to 29 thousand rubles per ton (excluding VAT). Prior to this, prices have been growing continuously since November 2022, Prime writes, citing SovEcon data. The company's analysts believe that the decline in prices is due to a slowdown in purchases by oil refineries and expectations of a significant increase in supply: in recent months, Russian oil refineries have been actively purchasing sunflower due to favorable export conditions and the weakening of the ruble, which led to a record production of sunflower oil, analysts say. As a result, the average sunflower prices in the domestic market increased by 39% from November to February, to more than 29 thousand rubles per ton. But in recent weeks, oil export prices have begun to decline. According to SovEcon, in February they decreased from $1.16 thousand/ton to $1.12 ...

Source: AgroInvestor