Russia pushing up export prices of Ukrainian sunflower oil

UkrAgroConsult

Article author:

Svetlana Kupreeva

Oilseed Market Analyst

This season 2020/21, Russia is going the way of using state regulatory mechanisms in the sunflower seed and oil markets because of a high level of domestic and retail selling prices:

– the export tariff on sunflower seed was raised to 30% of its customs cost when shipped outside the Customs Union, but no less than EUR 165/MT (from January 1 to June 30, 2021);

– producers and retail networks have signed an agreement providing for cutting the producer price (delivery for retail networks) to RUB 95/kg (including VAT) and limiting the retail price to RUB 110/kg (from December 20, 2020 to April 1, 2021);

– they are considering the possibility of imposing an export tariff on sunflower oil at 15%, but no less than EUR 135/MT, if the above-mentioned agreement is violated.

The markets responded immediately and, while solving its internal problems, Russia unintentionally pushed up export prices of the Ukrainian product.

Export price of Ukrainian sunflower oil closed this past week up USD 55/MT. While shipments from Ukraine remain record high (+12% y-o-y), UkrAgroConsult reports.

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