Record sunseed crop in Russia drives down seed, oil and meal prices

A record sunflower harvest in Russia in the MY 2026/27 has triggered a sharp decline in prices for sunflower seed and its processed products. According to various estimates, sunflower production could reach 19.1–21 mln tons, up 15–20% year-on-year. Excess supply is putting pressure on the domestic market: while sunflower seed prices reached RUB 46,050/t ($551/t) in July, they fell to RUB 19,000–20,000/t ($227–239/t) in southern Russia by late September. This represents a decline of approximately 57–59% from the summer peak.

The situation is being aggravated by export restrictions that effectively block sunflower seed shipments outside the Eurasian Economic Union (EAEU). The export duty stands at 50%, but not less than RUB 32,000/t ($383/t), making exports economically unviable. As a result, substantial volumes of sunflower seed remain on the domestic market. For small farms in southern Russia, sunflower production costs are estimated at RUB 22,000–25,000/t ($263–299/t), meaning current purchase prices no longer cover production expenses.

The price decline has also spread to the sunflower oil market. In September, wholesale prices in Krasnodar stood at RUB 72,000–77,000/t ($861–921/t), compared with RUB 104,000/t ($1,244/t) in July. This represents a decrease of approximately 25–31%. Increased domestic availability of sunflower seed is intensifying competition among processors and putting additional pressure on prices for processed products.

Meanwhile, domestic sunflower meal prices dropped to RUB 11,000–16,500/t ($132–197/t), compared with RUB 17,900/t ($214/t) in July. In contrast, export prices for sunflower meal increased from $238/t in July to $253.5/t in October. Turkey and China remain the main buyers of Russian sunflower meal. In January–August 2026, exports rose by 30% to 3.39 mln tons.

Thus, record sunflower production and high export duties are widening the imbalance between domestic supply and market opportunities. Sunflower growers are facing the greatest losses, as many are forced to sell their crops below production costs. Meanwhile, sunflower meal exports remain an important outlet for processed products, although falling domestic prices for sunflower oil and meal also pose risks to processors’ profitability.

Tags: Russia, sunflower oil, prices, sunseed, sunflower meal, crop forecast