The world market is not observing an increase in the production and export of sunflower oil after farmers in Russia and Ukraine collected a near-record harvest in the 2021/22 season – 15.6 million tonnes and 16.5 million tonnes, respectively.
“The main reasons are the extremely inactive pace of oilseed sales by farmers, as well as the low activity of oil importers in the first months of the current season, as they expected a more attractive price for the delivery of products against the background of a record sunflower harvest in the Black Sea region,” analysts said.
Against the background of the current situation, the processing volume of sunflower seeds in Ukrainian and Russian oil extraction facilities is below the potential level. In addition, there is an accumulation of high reserves of raw materials.
“Right now, the critical question for the global sunflower segment is how much more Black Sea farmers are willing to cut back on oilseed sales. According to experts at OilWorld (Germany), the continued expectation of a more favourable price is not justified given the level of oilseed stocks, the start of the harvest in Argentina and the forecast increase in the production of vegetable oils in the world in the following months “, the report says.
In addition, analysts at OilWorld (Germany), a Hamburg-based analysis firm, forecast that in the first eight months of 2022, the supply of sunflowers on the world market will increase from 34 million tonnes (January-August 2021) to 41.2 million tonnes.
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