MARKET DEVELOPMENT
Sunflower Seeds Output Estimate Increased by Oil World to Record
Sunflower Seeds Output Estimate Increased by Oil World to Record
14/08/2013 (Bloomberg) - Global production of sunflower seeds, the European Union’s most common source of food oil, will be a record in 2013-14 led by higher than anticipated output in the EU, Oil World said.
Output will rise 13 percent to 40.2 million metric tons, up 1.5 million from the previous estimate, with the EU forecast raised to a record 8.6 million tons from 6.9 million tons last year, the Hamburg-based research company said in a report. The EU will be the largest exporter in 2013-14 due to bigger crops in Bulgaria, Hungary and Romania, it said.
“Given the surplus of available supplies, primarily in Bulgaria and Romania, sunseed prices will stay under considerable pressure at the Black Sea locations in the new-crop seasons,” Oil World said.
Sunflower-seed prices fell to a 45-month low of $375-$385 a ton as of Aug. 8, or $75 to $90 a ton cheaper than rapeseed and also below soybean prices, Oil World said. By yesterday, soybeans dropped 25 percent in one year to $11.9425 a bushel ($438.77 a ton) on the Chicago Board of Trade.
The EU will use 3.3 million tons of sunflower oil for food in 2013-14, according to the U.S. Department of Agriculture’s Foreign Agricultural Service. The second most popular is palm oil followed by rapeseed oil.
Russia and Ukraine growers will focus more on domestic sales of sunflower seeds, leaving their combined exports at 250,000 tons this season compared with 700,000 tons in 2011-12, it said.
Large crops in importing countries will probably mean stockpiles are built up, Oil World said. Import demand in Turkey is estimated at 400,000 to 500,000 tons in the new season, down from 620,000 tons in 2012-13, it said.
Output will rise 13 percent to 40.2 million metric tons, up 1.5 million from the previous estimate, with the EU forecast raised to a record 8.6 million tons from 6.9 million tons last year, the Hamburg-based research company said in a report. The EU will be the largest exporter in 2013-14 due to bigger crops in Bulgaria, Hungary and Romania, it said.
“Given the surplus of available supplies, primarily in Bulgaria and Romania, sunseed prices will stay under considerable pressure at the Black Sea locations in the new-crop seasons,” Oil World said.
Sunflower-seed prices fell to a 45-month low of $375-$385 a ton as of Aug. 8, or $75 to $90 a ton cheaper than rapeseed and also below soybean prices, Oil World said. By yesterday, soybeans dropped 25 percent in one year to $11.9425 a bushel ($438.77 a ton) on the Chicago Board of Trade.
The EU will use 3.3 million tons of sunflower oil for food in 2013-14, according to the U.S. Department of Agriculture’s Foreign Agricultural Service. The second most popular is palm oil followed by rapeseed oil.
Russia and Ukraine growers will focus more on domestic sales of sunflower seeds, leaving their combined exports at 250,000 tons this season compared with 700,000 tons in 2011-12, it said.
Large crops in importing countries will probably mean stockpiles are built up, Oil World said. Import demand in Turkey is estimated at 400,000 to 500,000 tons in the new season, down from 620,000 tons in 2012-13, it said.