Is Moldova Really Short of Sunseed? UkrAgroConsult, Forecast
UkrAgroConsult
Article author:
At the end of March the Moldovan sunflower seed and sunflower oil market was shocked by the statement of the director of the company Floarea Soarelui about the shutdown of the largest crushing plants in the country – Floarea Soarelui and DANUBE OIL COMPANY due to the lack of SFS stocks. According to the director, the country’s SFS stocks are impressively small (about 100 K mt), farmers intend to offer these stocks at too high prices.
Minister of Agriculture of Moldova:
- This statement is more speculative.
- Moldova SFS stocks are about 350 K mt.
Licensing imports of wheat, corn and SFS was extended to protect and balance the domestic market.
The Ministry will meet SFS producers/suppliers and crushers to find efficient instruments to calm the market.
Trans-Oil Company stated also the crushing plants will not be shut down/closed, but stop activity for short-term to increase the SFS stocks and for technical maintenance.
UkrAgroConsult assumes that by the beginning of March 2024 the SFS stock in Moldova could not exceed 200 K mt. Certainly, this level of SFS stocks can promote SFS bullish trends in Moldova and in this way reduce the crushers’ margins.
UkrAgroConsult believes that the option of shutting down the crushers is one of the most efficient solutions for Trans- Oil Company to prevent or minimize losses.
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