Deficit of sunseed will maintain FOB prices at multiyear highs during 2020/21

UkrAgroConsult

Article author:

Olena Hesova

Grain and Oilseed Market Analyst

Same as in Ukraine and Russia, sunseed crop of Romania turned out to be lower than initial expectations, despite the higher area, UkrAgroConsult reports.

In mid-August spot price of the new crop saw a steep rise on the apparently lower sunseed supply in the Black Sea countries.

Due to the high prices, in September Turkey sharply decreased imports of Romanian sunseed.

To load the crushing capacities, Turkish importers will have to search for the sunseed and buy at high prices, which farmers of Black Sea region dictate to traders this season.  In 2020/21 USDA estimates Turkish sunseed imports as the third largest ever.

Also the EU countries are still going to crush record volume of sunseed this season, considering the deficit of the soybeans for imports and the gradual reduction of palm oil imports. Along with this, every month European Commission continues to revise downwards the local sunseed production.

This season lower supplies of sunseed in Black Sea exporters will keep FOB prices at high level throughout the season.

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