Next year could be more productive for the high-oleic market… if the conditions are favorable

UkrAgroConsult

Article author:

Svitlana Kupreeva

Oilseed Market Analyst

In MY 2021/22, the planted area of high-oleic sunflower decreased by 10% compared to the previous season, which was not the best year for farmers. Starting from January 2021, high-oleic sunseed was sold at the price of ordinary raw material and partially processed together with such oilseed.

However, the harvest was more than 1 M mt (+6% by MY 2020/21) due to the increase in yield.

High-oleic sunoil exports decreased by 24% by MY 2020/21. The key factor for Ukraine is the war, the blockade of ports, logistics constraints. Ukraine managed to retain its export markets in MY 2021/22, high-oleic sunoil was exported to more than 50 countries of the world. Among the key importers, the purchases of EU countries increased by 2% compared to the 2020/21 FY and the USA by 18%.

In MY 2021/22, the premium in the price of high-oleic sunflower is being restored, but in MY 2022/23, a significant reduction in high-oleic sunflower acreage is expected to -55% by MY 2021/22. The market was negatively affected by the military factor: in addition to the reduction of areas due to the occupied territories, uncertainty and risks led to a reduction in the import of seeds in the most productive months for their purchases – February and March.

Given the current situation and positive factors, we have the potential to grow high-oleic sunflower next year. We hope that the conditions that will be created in the future will allow it to be implemented in full.

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Tags: sunflower oil, sunflower, EU, prices, USA, high oleic sunflower, Ukraine