Will Turkey set some new records in the supply and demand balance for sunflower seed and oil?

UkrAgroConsult

Article author:

Svetlana Kupreeva

Oilseed Market Analyst

In MY 2021/22, Turkey’s sunflower seed production recovered (+12% from MY 2020/21) due to an expansion of plantings to a record and a yield increase.

At the same time, domestic crush is expected to rise to an all-time high. This will become possible due to record sunflower seed imports. Consequently, sunflower oil exports are expected at a record level, UkrAgroConsult reports.

The upward trend in oilseed imports was broken in MY 2020/21, when all the Black Sea sunseed growers (key suppliers of Turley) faced a crop failure.

The 2020/21 crop decline in Turkey caused the government to cut the sunflower seed import tax to zero. In addition, this decision was contributed to by a prohibitive tax on sunflower seed exports from Russia, which is a top supplier of the commodity to Turkey.

In order to balance the sunflower seed and products market, the zero tax rate for sunflower oil imports has been extended until the end of 2022.

In view of the current situation, it becomes doubtful that the expected record level of sunflower seed imports will be achieved. So, it is not ruled out that, based on the 2021/22 results, the supply and demand balance will be changed in favor of increased sunflower oil imports.

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Tags: import duties, supply and demand balances, sunflower oil, sunflower, Turkey