Ukraine. Linseed market hitting lows

In Ukraine, linseed is still a niche crop and its production is volatile. The largest crop in MY 2016/17 (more than 90 KMT owing to record high acreage and yield) was followed by two consecutive seasons with much lower figures.

Growth of Ukraine’s linseed market is curbed by the following major factors:

– an internal factor: a 10% duty on linseed exports;

– an external factor: the world’s key linseed growers – Russia and Kazakhstan – enhance their market positions.

Another reduction of the planted area is expected in 2019/20 season (-45% from MY 2018/19). A linseed crop decrease will reach a 12-year low with a yield at the five-year average of 1.08 MT/ha.

Linseed exports will fall by 17%, domestic crush will drop by 19%, reports UkrAgroConsult.

Taking into account cyclical trends in the production of niche crops, the 2019/20 season will most likely become a turning point for linseed growers, but market prices for linseed complex will continue to be the dominant factor.

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Please be reminded that on September 5, UkrAgroConsult will host a major meeting point of the oilseed industry operators – the 7th International Conference “Black Sea Oil Trade-2019” in Hilton, Kyiv, Ukraine.

‘Black Sea Oil Trade’ conference annually brings together key players of the global agribusiness at the start of a new oilseed season. The goal of the conference is to discuss prospects and directions of the Black Sea and global oilseed market development, exchange international contacts, share recommendations for adapting business strategies in the changing market and global trade.

Delegates from 15 countries have already registered for Black Sea Oil Trade -2019. Conference participants are represented by producers and crushers of oilseeds, traders, enterprises for deep processing of vegoils, investment companies, banks, legal, shipping, brokerage, insurance, surveyor and other companies.