Ukraine. Bright prospects for exporters of refined sunflower oil

20.07.2018

An 8.8% drop in Ukraine’s sunseed crop in the 2017/18 season pulled down all the indicators, from sunseed crushing to sunflower oil exports. A similar situation is observed in the refined sunflower oil too. Although refining in 2017/18 was down 2% year-on-year, it remained close to a record level.

The optimistic prospects for the new 2018 crop suggest that production of refined sunflower oil will recover.

The production of crude sunflower oil is more volatile, depending on feedstock supply to a greater degree. Against this backdrop, the refining volumes look more stable, varying within the range of 528-695 KMT.

The saturation of the domestic market with refined sunflower oil naturally prompted the expansion of end markets through foreign trade. The export statistics of recent years shows that exporters have successfully accomplished this task.

So, refined sunflower oil exports from Ukraine have risen more than 2.5 times over the past seven seasons.

In the 2018/19 season, Ukraine’s fat-and-oil industry has all the resources needed to expand refining and increase export potential of the refined sunflower oil market. This means the segment is set to restore its performance.

Full version of the article is available to subscribers for “Black Sea Vegoils” by UkrAgroConsult.

More detailed information on the latest trends in oilseeds/vegoils/meals exports, 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 is available to subscribers for weekly market report "Online market review" by UkrAgroConsult.

 

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