Plantings of high-oleic sunflower in Ukraine have been gradually expanding since a few years ago. However, there is a weighty factor curbing their expansion. This is volatility of grower’s margin. It fluctuates because of unstable supply and demand in the market, reports UkrAgroConsult.
As a result, this segment features a cyclical production pattern: acreage expansion alternates with contraction every 2-3 years. This poses a problem to the high-oleic sunflower oil market.
The interest in this oil crop is fueled primarily by rising premiums on high-oleic sunflower oil that enables crushers to offer a good price to growers.
Domestic consumption of high-oleic sunflower oil in Ukraine is small. The bulk of this oil is shipped abroad. Current data on shipments in the first three months of this season indicate record exports of high-oleic sunflower oil.
As before, its major importers include the EU, which absorbed some 72% of total exports this season. Overall, the range of export destinations is quite wide, already embracing about 30 countries in all the continents.
Taking into account growing interest of importers in this sunflower oil, planted area of high-oleic sunflower may increase in 2019. Correspondingly, its processing and finished product exports are expected to rise.
Full version of the article is available to subscribers for weekly market report “Black Sea Vegoils” by UkrAgroConsult.
Analytical report "Black Sea Vegoils" contains detailed analysis of the latest trends in oilseeds/vegoils/meals exports, palm oil imports, supply and demand balances with breakdown by crop as well as crop conditions and progress in planting/harvesting in the countries of Black Sea Region.
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