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Sunflower Outlook Cut by Oil World on Ukraine, Russia
Sunflower Outlook Cut by Oil World on Ukraine, Russia
15/10/2014 (Bloomberg) - World sunflower-seed production is predicted to slide 4.7 percent in 2014-15, more than forecast last month after the outlook for Russia and Ukraine was cut, crimping crushing for oil and meal, according to Oil World data.
Farmers around the globe may collect 40.6 million metric tons compared with 42.6 million tons in 2013-14, the Hamburg, Germany-based oilseed researcher wrote in a weekly report. The outlook was cut from 41.4 million tons in September.
Reduced supply is pushing up sunflower-seed oil prices relative to soybean and palm oils, according to Oil World. Sunflower-seed oil for delivery in Western Europe rose 2.3 percent in the week through Oct. 9, while crude palm oil prices fell 1.8 percent, the researcher reported.
“Consumers will have to adjust to the reality of declining world sun oil supplies in 2014-15 and seek replacement in the competing markets, above all in rapeseed, soya and palm oils,” Oil World said.
Most of the supply decline and “associated price strength” for sunflower seed products is expected to happen in the second half of 2014-15, according to the researcher.
Sunflower seed production in former Soviet Union countries is seen falling to 20.5 million tons from 22.4 million tons, with output in Ukraine dropping to 10 million tons from 11 million tons and the Russian harvest slipping to 9.2 million tons from 10 million tons.
Sunflower Crushing
Crushing of sunflower seed is expected to drop to 36.9 million tons from 38.5 million tons. That will lower production of oil pressed from the seed to 15.5 million tons, from 16.3 million tons, and meal to 17 million tons from 17.6 million tons, according to Oil World.
Sunflower-seed oil imports by the European Union, India, Turkey and Egypt are all expected to drop, the report showed. Falling supplies of meal for the EU will boost demand for alternative oil meals as well as feed grains, Oil World said.
World production of rapeseed and canola, a variety of the oilseed, is estimated to slide 3 percent to 67.7 million tons from about 69.8 million tons. The estimate was lifted from 67.5 million tons last month on higher-than-expected EU production.
Farmers around the globe may collect 40.6 million metric tons compared with 42.6 million tons in 2013-14, the Hamburg, Germany-based oilseed researcher wrote in a weekly report. The outlook was cut from 41.4 million tons in September.
Reduced supply is pushing up sunflower-seed oil prices relative to soybean and palm oils, according to Oil World. Sunflower-seed oil for delivery in Western Europe rose 2.3 percent in the week through Oct. 9, while crude palm oil prices fell 1.8 percent, the researcher reported.
“Consumers will have to adjust to the reality of declining world sun oil supplies in 2014-15 and seek replacement in the competing markets, above all in rapeseed, soya and palm oils,” Oil World said.
Most of the supply decline and “associated price strength” for sunflower seed products is expected to happen in the second half of 2014-15, according to the researcher.
Sunflower seed production in former Soviet Union countries is seen falling to 20.5 million tons from 22.4 million tons, with output in Ukraine dropping to 10 million tons from 11 million tons and the Russian harvest slipping to 9.2 million tons from 10 million tons.
Sunflower Crushing
Crushing of sunflower seed is expected to drop to 36.9 million tons from 38.5 million tons. That will lower production of oil pressed from the seed to 15.5 million tons, from 16.3 million tons, and meal to 17 million tons from 17.6 million tons, according to Oil World.
Sunflower-seed oil imports by the European Union, India, Turkey and Egypt are all expected to drop, the report showed. Falling supplies of meal for the EU will boost demand for alternative oil meals as well as feed grains, Oil World said.
World production of rapeseed and canola, a variety of the oilseed, is estimated to slide 3 percent to 67.7 million tons from about 69.8 million tons. The estimate was lifted from 67.5 million tons last month on higher-than-expected EU production.