Ukraine's sunflower export rates growing, with 2% increase in yields in 2024 - analysts

MOSCOW. April 16 (Interfax) - The Ukrainian sunflower seed exports in March 2024 reached 52,400 tonnes, which is twice as much as in February and became the second largest monthly volume since the beginning of the current season, Ukrainian media reported, citing the APK-Inform information and analytical agency.

"At the same time, 36,300 tonnes of sunflower have already been exported over 14 days of April (about 27,000 tonnes over the same period in April 2023), of which about 25,000 tonnes were shipped to the Netherlands," analysts said.

Exports to Bulgaria rose 4.7 times, to Turkey by 30%.

At the same time, the export volumes of this oilseed crop in the current season remain much lower year-on-year. In total, 286,300 tonnes were exported to the foreign markets from September 2023 to April 14, 2024, which is 84% lower than the figure for the same period in the 2022-2023 farming year.

"Until the end of the current season, about 250,000 to 300,000 tonnes of sunflower may still be exported from Ukraine. The demand for Ukrainian sunflower from the European Union is expected to grow further against the backdrop of seasonal reduction of oilseed stocks not only in Ukraine, but also in Europe, but the more attractive price levels on the domestic market, as well as difficulties in obtaining licenses for shipments, for example, to Bulgaria, will still restrain this trend," APK-Inform said in a forecast.

The UkrAgroConsult information and analytical agency, in turn, expects Ukraine not to lose its leading position in sunflower oil trade in 2024, while the sunflower harvest will be 2% higher than a year earlier and sunflower oil exports will be no lower than it were last year.

"Ukraine and Russia traditionally remain the world's major producers of sunflower and sunflower oil. [Previously], negative scenarios were voiced about Ukraine's prospects and loss of dominance in sunflower oil trade. However, a more positive scenario is currently being implemented," experts said.

UkrAgroConsult's forecast for Ukraine looks more optimistic, as it is "based on the expansion of sown areas, which, even in the event of average yields, will ensure an almost 2% increase in yields and exports of sunflower oil no lower than at the current levels."