Volga Baikal AGRO NEWS Update on the Sunflower Oil Duties Situation !!!
Since September 01, the duty on oil exports has been set at 70% of the difference between $1 thousand per ton and the indicative price, reduced by the amount of the correction factor of $50 per ton. According to Sovecon, last week sunflower oil on average cost $1.35 thousand per ton (FOB).
Andrey Sizov, Director of Sovecon, notes that the current season helps to curb sunflower sales: dry seeds have been collected, which is easier to store even for small farms. Dmitry Rylko, Director General of the Institute of Agricultural Market Conjuncture, adds that farmers also hold other oilseeds, including soybeans. According to him, in addition to the late harvest in Russia and similar problems in Ukraine, the reason is the increase in oil prices on world markets.
According to Mikhail Maltsev, executive director of the Fat-and-Oil Union, agricultural producers release small batches of seeds to the market, so that processing is provided with raw materials “from wheels”.
According to him, the cost of batches already exceeds 38 thousand rubles, which means negative profitability for processors,
The Ministry of Agriculture stated that they are ready to initiate an increase in the export duty on oil in the event of a significant increase in domestic prices. But processors expect that the wait-and-see strategy of farmers will have the opposite effect.
According to Mikhail Khokhlov (director of the oil and raw materials division of Efko Group), by the end of the year there may be a surplus of sunflower on the market. And Mikhail Maltsev predicts that the cost of sunflower seeds may fall below 30 thousand rubles per ton.