Global

Sunflower Oil Prices Remain Under Pressure From Lower Palm and Soybean Oil Prices

Argentina has started harvesting sunflowers, and as of the beginning of 2023, 6% of the field has been threshed, with 78% of the crop being in good or satisfactory condition, down from 93% at the same period in 2022. While March palm oil prices on the Malaysian exchange yesterday declined 0.96% to an 11-day low of USD 918/t on expectations of the report data, March soybean futures on the Chicago Mercantile Exchange fell 0.9% to USD 1,396/MT since early January. As a result, amid higher supplies from the Russian Federation and Ukraine, demand prices for sunflower oil with delivery to customers in December dropped from USD 1,350 to USD 1,245/t CIF. EU demand prices also fell to USD 1,120/MT DAP Poland, USD 1,150/MT DAP Bulgaria, USD 1,250/MT DAP Italy due to reduced demand from biodiesel producers amid lower oil and rapeseed oil prices.

Ukraine

First Estimates of Ukraine’s 2023 Oil Seed Harvest

The decline in agricultural margins in 2022/23 forces Ukrainian farmers to develop a strategy that lowers production costs and increases the area of the most lucrative crops for the harvest in 2023. One of the most profitable crops is sunflower seed. Since 2018, the average area of Ukraine has exceeded 6.5M hectares. From 2022, the region is expected to expand by 10%. In addition, the expansion of sunflower plantings is driven by continued operation of crushers in the central and even southern regions resulting from the revival of vegetable oil exports through the "grain corridor," and export shipments are currently quite active.

The Price of Sunflower Rose in the Ports of Ukraine

Since the beginning of January, the price of sunflower seeds has increased in the Danube ports in Ukraine. A decrease in the supply of oilseeds from agricultural producers over the New Year's holiday helped to support prices. This was also facilitated by their fulfillment of sunflower seed in accordance with previously signed contracts. The continued competition between processors and companies focused on exports was another element in the price increase. As a result, over the course of the given period, the price of demand for sunflower seeds grew by USD 13.60-24.47/MT, and as of January 10, the price ranges most commonly fall between USD 454.13-500.36/MT SRT-port.

Four Regions of Ukraine Have Completed Harvesting 

All of the agricultural crops for 2022 have been harvested on the farms in the Mykolaiv, Odesa, Bukovyna, and Vinnytsia regions. Grain and leguminous crops were harvested as of the first week of January on 10.7M hectares or 93% of planted area with a yield of 46.4MT/ha, and 49.5MMT of grain were threshed. Harvesting of sunflowers took place on 4.8M hectares, or 99% of the total area. Total of 10.5MMT of seeds were threshed with a yield of 21.7MT/ha.

In Ukraine, Oilseed Crops Are Becoming a Priority for Agrarians

For Ukrainian farmers, oilseed crops are becoming increasingly important. On the example of winter rapeseed, where the area sown did not decrease from 2022, this is already obvious. Additionally, it is anticipated that soybean and sunflower acreage will rise. Although oil crops produce a smaller gross harvest and have a lower yield, their costs are 2-2.5 times higher than those of grains.

Argentina

Marketing of the 2021/22 Sunflower Campaign in Argentina

More than 3MMT in final contracts were signed for sunflowers in the domestic market during the 2021/22 campaign, and more than 2MMT of sunflower seed in export sales were reported. The 2021/22 sunflower advertising campaign in Argentina ended in December, leaving some intriguing information about its marketing trends.

The Drought in Argentina Could Have a Negative Impact of 1.8% Of GDP

Argentina's wheat, barley, soybean, corn, and sunflower crops perform less well in 2023 due to high temperatures and a lack of rainfall, which would have a negative effect on the country's gross domestic product (GDP) by 1.8%. Therefore, in regard to sunflower, in a moderate scenario, their production could be 3.7MMT. However, in a pessimistic scenario, with a more pronounced drought, production is expected to be reduced to 3.5MMT.

Turkey

The Cultivation Areas of the Strategic Product Sunflower Increased by 15% In Turkey

With the help of agricultural organisations and municipalities, sunflower production areas have increased by 15%. Turkey can currently supply 65 to 70% of the nation's sunflower oil requirements. Because of this, it is possible to increase sunflower output and even export it abroad. Sunflower is a plant that can grow in a variety of climates and that with planned production and farmer support, sunflower production may rise in Turkey.

Serbia

Serbia Subsidizes Sunflower Producers With Nearly USD 20.57M

The Serbian government approved the delivery of a subsidy for a total of 2.2B Serbian dinars, or roughly USD 20.31M at the current exchange rate, through the adoption of an update to the Program for Financial Support of Sunflower Farmers guidelines for 2022. To secure the population's food security and lessen the effects of the rise in the production prices of the oilseed crop, the government issued a decree for producers of sunflowers.

India

India Continues Duty-Free Imports of 2MMT of Crude Sunflower Oil Until March 2024

Until March 2024, the Indian government will continue to allow duty-free imports of 2 MMT of crude sunflower oil, according to the cabinet. India obtains sunflower oil from Russia and Ukraine and imports soybean oil primarily from Argentina, Brazil, and the United States. According to a trader, halting duty-free imports would benefit rival palm oil, which is subject to import duties.