In 2022, the most attractive crop for cultivation among farmers will remain natural – sunflower. This is facilitated by its high profitability. At least, a decrease in demand and a significant drop in its prices are not expected.
This opinion was expressed by the Director-General of the Association “Ukroliyaprom” Stepan Kapshuk in the material on the Latifundist.com.
According to Ukroliyaprom, Ukrainian sunflower harvest in the current MY amounted to 16.5 million tons (+ 25.9%); soybeans – 3.4 million tons (+22.7%), rapeseed – 3 million tons (+15.4%).
On the world market, according to the latest USDA estimates, the production of oilseeds in 2021/22 MY will increase by 3.9% (to 627.58 million tons) compared to 2020/21 MY. Sunflower seed assessment will raise the most – up to 57.04 million tons (+ 16.1%). Soybeans will be harvested at 381.8 million tons (+ 4.2%). And the production of rapeseed in the world will fall to 68.35 million tons (-6.6%).
At the same time, according to the expert, a larger harvest of sunflower in Ukraine and the world is no guarantee that seed prices will fall. In the past, the cost of selling sunflower in Ukraine doubled and in some periods reached 25-27 thousand UAH (775-840 EUR) per ton. In the current MY, analysts do not expect a sharp increase in sunflower prices, but they also do not forecast a decrease.
“Rising energy prices, demand for biofuels, an increase or decrease in global demand for edible vegetable oils (depending on the spread of a new COVID-19 strain and tightening of quarantine measures by countries) – all this will affect pricing. Now the situation is uncertain and changes every week. But I believe that there will not be such an unpredictable price increase as in the last marketing year,” commented Stepan Kapshuk.