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Volga Baikal AGRO NEWS Update on the Situation on the Oilseed Market !!!
PRICE MONITORING
According to the departmental monitoring of the Ministry of Agriculture of Russia, the average prices for sunflower seeds and sunflower oil in the Russian Federation for the week from September 23 to September 30 increased by 3.5 and 1.0%, respectively. Soybeans rose 5.8%. Rape seeds and soybean meal fell 0.3%. The cost of sunflower meal remained unchanged. For reference: the ruble against the dollar has weakened by 4.3% during this time.
For the week from September 23 to September 30, sunflower rose in price in all federal districts, most of all in the North Caucasus (up to 27,549 rubles / ton). The Center has recorded the most significant growth in the value of this crop compared to the level of the previous year. Sunflower in the Central District remained the most expensive in Russia (27,624 rubles / ton), it is cheapest in the South (24,743 rubles / ton).
OIL CROPS PROCESSING
According to Rosstat, the production of sunflower oil in August (as in July) remained lower than last year and amounted to 258 thousand tons (-31.3% versus July and -10.8% versus last year). The volume of oil shipped from enterprises, on the contrary, increased to 265 thousand tons (+ 20.3% and + 26.9%, respectively). As a result, the sunflower oil balances in August decreased by 56.3% and amounted to almost 243 thousand tons by September 1 (+ 65.9% to the level of the previous year). In general, in 2019/20 (September – August), more than 5.82 million tons of sunflower oil were produced (+ 18.8% over the 2018/19 season).
The volume of production of unrefined soybean oil in August increased by 7.8% against the level of July, exceeded the last year’s indicator by 11.4% and amounted to 66.8 thousand tons. In total, over 762 thousand tons of soybeans were produced in 2019/20. oils (-0.5%).
INTERNATIONAL TRADE
According to preliminary data from the Federal Customs Service of Russia, from September 21 to September 27, 27.4 thousand tons of soybeans were exported from the country. The main directions of supply of these products were China (23.9 thousand tons, or 87.3% of exports per week) and Turkey (3.0 thousand tons, or 11.0%).
Export of rapeseed oil amounted to 23.9 thousand tons.The main directions of supply of this product were Norway (11.8 thousand tons, or 49.4% of exports per week) and China (6.54 thousand tons, or 27.4% ).
During the same period, 19.1 thousand tons of sunflower oil were shipped abroad; 16.0 thousand tons of flax seeds; 15.1 thousand tons of soybean meal; 13.6 thousand tons of rape seeds; 12.2 thousand tons of soybean oil and the same amount of sunflower seeds; 2.7 thousand tons of sunflower meal.
WORLD MARKET
From September 25 to October 2, the weakening of oil prices (-8.0%) against the background of an increase in the number of COVID-19 infections in the world put downward pressure on world oil prices.
Soybean oil prices declined in Brazil (9.9%), Argentina (3.7%) and the United States (2.2%). Palm oil in Malaysia fell 1.4%. Prices for Argentinean and Ukrainian sunflower oil decreased by 1.1 and 0.6%, respectively. At the same time, palm oil in Indonesia rose in price by 2.4%, Canadian rapeseed oil – by 1.0%.
Due to the hot and dry weather in Russia and Ukraine, analysts are lowering forecasts for the sunflower harvest. According to the “Center of Agroanalytics”, the arrival of the new sunflower crop on the market put downward pressure on the world prices of this crop. Ukrainian sunflower fell in price by 6.3%, Bulgarian – by 1.1%.
The increasing pressure on the price of soybeans comes from the increase in purchases by China to create reserves amid aggravated relations with the United States. During the reporting period, soybean prices in Brazil, the United States and Argentina increased by 2.9, respectively; 1.7 and 1.2%.
