Sunflower production in Ukraine estimated to shrink to 125 lakh tons
20-Sep-2024 12:51 PM
Kyiv. The US Department of Agriculture (USDA) has reduced the sunflower production estimate for the 2024-25 season in Ukraine by 10 lakh tons to 125 lakh tons, which is 30 lakh tons less than the 2023-24 season production of 155 lakh tons and 21 percent less than the five-year average production.
During the current year, on one hand the sowing area of sunflower in Ukraine decreased and on the other hand, its average yield rate also decreased.
Due to the fall in production and the slow pace of sale of goods by the producers, the price of sunflower has increased.
The price of sunflower seed with 50 percent oil content (condition) has increased to 20,500-21,500 hryvnia (Ukrainian currency) per ton, due to which the price of oil and DOC has also increased.
Although the free on board export offer price of sunflower oil at the ports of Ukraine is stable at $ 910-930 per tonne and the price of sunflower DOC is stable at $ 190-195 per tonne, but this price does not reflect the actual situation of the domestic market there.
It is natural for the price of oil to increase due to the high price of sunflower. The price of sunflower oil for export to India is running at $ 1060 per tonne, while the price (offer price) of refined sunflower oil is being reported to be $ 1050-1060 per tonne.
Globally, a decline of 20 lakh tonnes in the production of sunflower and 12.70 lakh tonnes in the production of rapeseed has been estimated.
The rapeseed crop in the European Union was weak this time. On the other hand, the export offer price of sunflower oil for October shipment at the ports of the Black Sea region in Russia increased by $ 5 to $ 930 per tonne.
In Russia too, there are indications of a decline in the production rate of sunflower in drought affected areas.
It is worth noting that Russia and Ukraine are the two largest producers and exporters of sunflower and its value-added products in the world. India imports huge quantity of sunflower oil from there.