W52: Weekly Sunflower Update
Ukraine
Crop Progress in Ukraine With Corn 78% Harvested, Sunflower Campaign Finalises at 10.5MMT
According to the Ministry of Agrarian Policy and Food, grain and leguminous crops in Ukraine yielded 48.8MMT on 10.6M ha as of December 29, which is 92% of the planned area compared to 24.48M ha in 2021. 10.5MMT of sunflowers were harvested on 4.8M hectares, or 99% of the sown area, with an average yield of 2.17MT/ha.
There Is an Upward Trend in Sunflower Prices on the Market
Analysts point out that despite a relatively low supply of oilseeds from farmers, the demand for sunflower seeds from oil refineries is steady, supporting price growth. The increase in pricing was also influenced by high export rates and a decrease in gross collection because of wars in some areas and minefields. On the market, sunflower prices are on the rise in W52. It should be noted that, compared to USD 367.89-449.64/MT SRT at the end of November, the demand prices for sunflower seeds as of December 28 range between USD 386.96-476.89/MT SRT.
In Ukraine, Export Revenue From Agricultural Products Will Decrease by Almost 20% In 2022
The agro-industrial complex's export earnings will be USD 23.3B in 2022, a 16% decrease YoY. Beginning in 2022, export shipments were dramatically increased in response to the possibility of a Russian war on Ukraine, preventing an even larger difference in annual indicators. Due to the temporary closure of sea lanes, fewer sunflower seeds were processed, which allowed for the shipment of raw materials directly.
The Area Under Crops After the Liberation of the LPR Increased by 4.5 Times
When liberated territories are included, the republic's crop area will have increased by 4.5 times by 2022. The volume of our own production of grain and leguminous crops, including corn, amounted to more than 1.19MMT. There are more than 1.06MMT of winter wheat 308,100MT of industrial crops, including sunflower at 294,500MT, which will fully provide the domestic market of the republic with the main types of agricultural products and food.
2022’s Sunflower Productivity Was Most Affected by the Saturation of Diseases
The year 2022 wasn't great for sunflowers, mainly due to disease saturation, which was the key reason preventing increased output. As a result, the yield of sunflower in all cultivation zones ranged between 2.8-3.3 MT/ha. Additionally, Ukraine's production dropped due to the cool weather that arrived at the time of the sunflower, a crop that prefers heat. The sunflower is a heat-loving crop, and the cool weather fell just during the period of its pollination, so it was under pollinated. 2022's sunflower harvest in Ukraine is almost 40% lower YoY.
Russia
Oilseed Harvest in Crimea in 2022 Increased by 37% YoY
Operational data show that 2022's oilseed crop harvest in the region was more than 200,000MT, which is 37% greater than in 2021. A rise in production is also seen in the grain harvest, which saw a 2MMT increase in gross production in Crimea. According to earlier comments made by the Republic's Minister of Agriculture, the sunflower harvest in 2022 will be 111,000MT, a 14% increase over 2021. The area that has been threshed is around 76,000 hectares. The Krasnogvardeysky, Krasnoperekopsky, Dzhankoysky, and Razdolnensky regions lead in the production of this crop.
In January, 2023 the Export Duty on Sunflower Oil From Russia Will Remain Zero
As in the previous three months, there is no tax on the export of sunflower oil from the Russian Federation in January. Since July, duties have been calculated in rubles rather than dollars, as was previously the case. The resolution authorising it, which was approved on June 30, 2022, also stipulates that the levy on the export of sunflower oil and sunflower meal will be extended for a year, until August 31, 2023. According to the decision, the base price for determining the export duty for sunflower oil as part of the tariff conversion to rubles is 82,500 rubles per tonne, rather than the USD 1,000 per MT previously considered. The amount of duty on sunflower oil is 70% of the difference between the base price (82,500 rubles per ton) and the indicative price (arithmetic average of monthly market prices).
A Record Sunflower Harvest Was Harvested in the Saratov Region
In 2022, farmers in the Saratov region were able to harvest more than 2 MMT of sunflower. Roman Kovalsky, the region's minister of agriculture, claims that despite the challenging weather, the oilseed yield in 2022 is strong at 14.7 centners per hectare, which is 3 centners per hectare higher than in 2021. In the Samoilovsky and Pugachevsky municipal districts, 125,000MT and 105,000MT, respectively, of sunflower have been harvested.
Production of Unrefined Sunflower Oil in Russia Increased by 15.2% Over 11 Months
From January through November 2022, 5.4 MMT of unrefined sunflower oil and its components were produced, a 15.2% increase over the corresponding period in 2021. Unrefined sunflower oil and its fractions were produced in quantities of 580,300MT, an increase of 2.1% and 0.5% over November 2021 and October 2022, respectively.
Grain Harvest in Russia in 2022 Amounted to 150.7MMT
In 2022, according to estimations, farms of all categories (agricultural organisations, farmers, and the population) collected 150.7MMT of grain after processing, followed by 15.3MMT of sunflower seeds, 41.7MMT of sugar beets, 18.6MMT of potatoes, and 13MMT of vegetables.
Argentina
Sunflower Harvesting Work Continues in the NEA and Central-North Regions of Santa Fe, Argentina
The conditions of the sunflower in the various regions of the country differ because of the uneven rainfall that was observed during the crop cycle. The productive potential in the south is still very similar to the averages from the previous campaigns. 77% of the farms report a crop condition that falls between "good" and "normal" on a national scale. During the week, the harvest developed in the NEA, where varied yields were noted, averaging 16 qq/ha.
The Sunflower Is Between Good and Average in Entre Ríos, Argentina
The Entre Ríos Grain Exchange reported that the 18,000 hectares of sunflowers planted in the province in 2022/23 are in a challenging situation, according to the Entre Ríos Grain Exchange. Despite being one of the crops best suited to endure water shortages, high temperatures and little rainfall worsened the oilseed's condition. The sunflower's phenological condition at the end of this year spans from the start of flowering to physiological maturity, just before harvest. As a result, the qualified area under "good to very good condition" decreased by 12% over the past three weeks, according to the Stock Exchange. The decline is 24% when compared to the same date last year. In essence, by the end of 2022, the crop will be in the following condition at the provincial level: 4% in very good condition, 72% in good condition, and 24 in regular condition.
Kazakhstan
For 10 Months, Kazakhstan Almost Doubled the Export of Flour and Sunflower Seeds
Kazakhstan has been able to dramatically boost the export of flour, wheat, and sunflower seeds despite the restrictions put in place in 2022. For 10 months in 2022, sunflower seed exports rose by 92.3%, from USD 59.8M in 2021 to USD 115M. Kazakhstan exported wheat for USD 1.49B in 2022, representing an increase of 39% as compared to the same quarter in 2021 of USD 1.07B. Additionally, for 10 months in 2022, flour was exported from Kazakhstan in the amount of USD 601.4M while during the same time frame in 2021, it was sold abroad for USD 318.2M.
When state subsidies are taken into account, it is currently more profitable for Kazakhstani agricultural producers to sell sunflower seeds domestically rather than abroad. Consequently, the anticipated introduction of an oilseed export duty in early 2023 shouldn't have an impact on the income of producers.
Producers Do Not Note Discomfort From the Export Duty on Sunflower
On December 14, a draft order from the Minister of Trade and Integration introducing a 20% tariff, but not less than USD 105.91/MT, on the export of sunflower seeds from Kazakhstan was reported. The duty is expected to go into effect at the start of 2023. The introduction of an export duty, in response to high demand and rising prices on international markets, will, in the opinion of experts from the Ministry of Agriculture, help maintain the average annual volume of sunflower exports and reduce the "excessive volume" of raw material exports from the country. The tax will also encourage the growth of domestic value-added production, processing, and exports. At the same time, income from the collection of export duties will be directed to the country's budget, from which the same agricultural producers are subsidised.
Bulgaria
Sunflower Prices Are Unchanged During the Short Trading in W52
The quotations in the "Grain" sector of " Sofia Stock Exchange" JSC are the same as in W51. There are requests for the procurement of oilseed sunflower from a location at USD 515.10/MT without VAT and white sunflower at USD 1643.43/MT.
Turkey
The Turkish Grain Board Is Looking to Import 24K MT of Sunflower Oil
The Turkish Grain Board (TMO) created a tender to import 24K MT of sunflower oil to ensure supply availability in the domestic market. TMO will purchase 6K MT of raw sunflower oil at USD 1,119.8/MT CIF Tekirdag and 18K MT at USD 1,218.8/MT CIF Mersin.
Tanzania
Sunflower Farmers Promote Production in Tanzania
The smallholder farmers’ network in Arusha Tanzania, has formed a platform for researchers and farmers seeking to increase sunflower production for cooking oil. The forum targets to improve production and its value chain among the farmers of the Monduli, Karatu, and Arusha districts in the region. The crop and its value chain are the bedrock of the country’s edible oil industry, with its current national demand at just over 500K MT. Tanzania's production is hardly 300K MT, requiring an import tag of 350K MT.
