Decrease in sunflower crop and shrinkage of end markets unfavorably reflects export of Ukrainian sunflower oil in 2015

06.02.2015, 10:49

As it turned out to the company “ProAgro” , relatively thin crop of sunflower in Black Sea region in 2014 unfavorably reflects the export potential of Black Sea countries in the first half-year 2015.

In Ukraine and Russia total volumes of sunflower processing into oil and solvent cake in the second half-year 2014 reached historical record, having amounted to 7.26 million tons against 7.16 million tons a year earlier. However, on the market observes quite active demand for the production of Ukrainian and Russian processors.  Therefore, one can suppose that quite soon, export reserves of oil and solvent cake in both countries will be mainly exhausted, and till new harvest paces of their export will remain quite moderate.

Since December, production rates of sunflower oil in both countries started to demonstrate signs of the seasonal decrease which is likely will be continued in the first half of 2015. Already in December, in Ukraine and Russia were processed only 770 thousand tons of sunflower, against 850 thousand tons processed in November. And November most likely will be peak month of the season by the rates of sunflower processing. It is also less than 839 thousand tons processed in December 2013. Nevertheless, rates of sunflower processing in Ukraine and Russia in the first three months 2014/15 marketing year were so high that even despite the decrease in December, total production volumes of sunflower since the beginning of the season is still higher than last year, having amounted to  2,97 million tons, against 2,92 million tons.

ProAgro

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