Due to the agriculture research company Sovecon at the end of last week, sunflower prices in Russia fell to the lowest level since autumn 2020 and amounted to 28.4 thousand rubles per ton.
“According to the results of the last week, sunflower seeds fell by 1,225 rubles, to 28,450 rubles/t (without VAT). Crop prices are at their lowest level since September 2020.
As explained in Sovecon, the sunflower market is under strong pressure against the backdrop of a strong ruble and significant stocks of oilseeds.
The company’s analysts also noted that export prices for sunflower oil fell significantly last week – by $210, to $1.6 thousand per ton on FOB terms.
According to experts, the price of the product fell due to the fall in the cost of soybean and palm oil. The latter has lost about 30% since the beginning of May on the back of a recovery in Indonesian exports and the recent oil sell-off.
“We believe that while maintaining the current mechanism for calculating export duties and the exchange rate of the ruble, prices for sunflower oil and sunflower seeds will remain under strong pressure in the short term,” says Sovecon.