Ukraine to press Russia in the Turkish vegoil market

30.03.2017

Sunoil trade persists to be a topical issue for the Black Sea countries in MY 2016/17, when they face a task to process and sell a bumper sunseed crop. UkrAgroConsult already wrote before that end markets had been redistributed over the last three seasons between the key competitors, i.e. Ukraine and Russia. The current marketing year continues showing previously set trends. 

Ukraine remains the undoubted leader among sunoil suppliers to India, which shows greater interest in the Ukrainian product in MY 2016/17 than a year ago. Its purchases in the first six months of the current season were up almost 42% year-on-year.

Competition in the ЕС market can be considered a closed issue now: Russian shipments to this direction are at a minimum level, whereas the commodity flow from Ukraine is steady.

The intersection of the two nations’ interests in the sunoil trade with Turkey seems to have been basically solved now as Ukraine has yielded this niche to Russia following diversification and switch of end markets. However, the situation in this market may change in the light of the latest developments in the Russian-Turkish trade relations. For Russia, which has shipped roughly 40% of its total sunoil exports to Turkey over recent seasons, the imposed import duty will actually mean loss of this market.

Full version of the article is available to subscribers for weekly market report “Black Sea Vegoils +CIS” and “Online market review” by UkrAgroConsult.

 

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