Business news from Ukraine

Sunflower prices will reach 17-18 thousand UAH per ton

Agrarians in the southern regions of Ukraine have started harvesting sunflower, the market is gradually switching to trading the new sunflower crop, which has both demand and decent prices, which will reach 17-18 thousand UAH/ton in November-December, according to the analytical cooperative “Pusk”, created within the framework of the All-Ukrainian Agrarian Council (AAC).

“The new sunflower harvest is already being traded on FOB and CIF basis, in particular, Italy recently purchased a thousand tons of Ukrainian oilseed at $465/ton. Processors are already announcing prices at $370/ton excluding VAT,” the analysts said.

They expect that in August-September, the purchase prices for sunflower in Ukraine will remain in the range of 14 500-15 000 UAH/ton.

In the near future, Ukraine is expected to have high air temperatures and no precipitation, which will facilitate the harvesting campaign, so the supply of sunflower will grow, experts said.

“If there is no significant precipitation, then in mid-September we can expect the traditional price decrease by 1000-1500 UAH/ton – the price tags will drop to 12-13 thousand UAH/ton under the pressure of harvesting. But in November-December, the range will increase to 17-18 thousand UAH/ton. The seasonal model generally shows an upward trend in prices,” experts predict.

The level of purchase prices for Ukrainian sunflower will support the global growth of prices for vegetable oils on the world market, the UGA believes.

Ukrainian sunflower prices will continue to grow – experts

Prices for Ukrainian sunflower rose by 11.5% during the week against the background of the growth of exchange prices for vegetable oils and amounted to 14000-14500 UAH/tonne and will grow further, according to experts of analytical center of the cooperative “PUSK”, created within the framework of the All-Ukrainian Agrarian Rada (AAR).
“Last week, the price of soybean oil on world exchanges jumped up a lot, which caused the physical market, prices for raw materials for production of vegetable oils, including prices for sunflower oil,” the analysts explained.
This led to the fact that the current week began with a price range for sunflower around 14000-14500 UAH/ton, while last week began with prices at 12000-12500 UAH/ton.
“Uniformly, the market is moving from falling to rising. The other day India bought 80 thousand tons of sunflower oil from Ukraine, which increased the prices for vegetable oil on FOB terms by $ 60-70/ton, on CPT terms the oil went up by $100-110/ton. The market has become more active, the sunflower has most likely passed the “price bottom” of this season”, – stressed the analytical department of the cooperative “PUSK”.
Experts reminded that in July plants will begin to process rape, which could lead to a sunflower price subsidence in the second half of July.
Further rise in sunflower prices will be moderate, they will not exceed 15 500 hryvnias/ton, “PUSK” forecasts.

“Kernel” allocated 35% of area for sunflower and 18% for soybeans

Kernel Agro-Industrial Group, as of mid-May, has fulfilled 95% of its plans to sow spring crops, allocating 35% of the area for sunflower and 18% for soybeans, the company said on Facebook.
“Agroclimatic features of the current season: a large amount of precipitation in March and April, a high level of subsurface water in some regions and, accordingly, the waterlogging of much of the fields – have significantly adjusted the production program of agricultural enterprises “Kernel”,” the company said in its information.
As reported, the sunflower accounts for 35% of sown area, or 120 thousand hectares, the corn – 24%, or 85 thousand hectares, the soybean – 18%, or 65 thousand hectares.
Moreover, winter wheat accounts for 17%, or 60.4 thousand hectares in the structure of areas under crops. Areas under rape and perennial grasses are traditionally insignificant, the holding said.
It is stated that Kharkiv cluster was able to carry out seeding on 28 thousand hectares, and another 1 thousand hectares were left without treatment because of security reasons, as these lands are located 40 km from the front line – in Kupiansky area. As of May 16, 100% of the planned areas for the season were sown in the cluster.
According to Alexander Zvyagintsev, deputy head of production of the Kharkiv cluster, 35% of the area is planted to winter wheat, 30% to sunflower, 15% to winter rape, 10% to corn, and 10% to soybeans.
Druzhba Nova” cluster team in Sumy region took 177 thousand hectares of arable land for the future harvest, while 7 thousand hectares near the Russian border were left uncultivated.
Druzhba Nova” cluster head for production, Igor Tihonchuk, said that corn and sunflower are already being sown; 20% and 35% of the crop is under crop cultivation correspondingly. Sowing of soybeans, which will take 24% of the area, will be completed by May 25. Sowing of winter wheat will occupy 17% of the area.
According to the holding, because of the oversaturated fields, some early spring technological operations have been canceled, replaced or shifted in time. The shift in timing affected the beginning of the sowing season, which in all regions began in late April, which is two weeks later than the traditional dates.
Kernel Agronomic reported favorable sowing conditions for sunflower and corn, which were sown in parallel to accelerate the pace of the sowing season.
“Most agroclusters have completed corn and sunflower seeding and are completing soybean seeding. This is a heat-loving crop, the conditions for sowing which were not favorable until May 5-6. Despite the vagaries of weather, 80% of areas for the next soybean crop we plan to sow at the optimum time for the crop, “- summed up the agricultural holding.
“Kernel” before the war was the world’s number one producer of sunflower oil (about 7% of world production) and its export (about 12%), as well as the biggest producer and seller of bottled sunflower oil in Ukraine. The company was also engaged in cultivation of other agricultural products and their sale.
In FY2022 (July-2021 – June-2022), the holding posted a net loss of $41 mln versus $506 mln net profit in the previous FY, while its revenue decreased by 5% to $5.332 bln and EBITDA decreased by 3.7 times to $220 mln.

, ,

KSG Agro will reduce sunflower crops by 15%

Agroholding KSG Agro in 2023, the sunflower area will be reduced by 15% compared to last year – down to 7.3 thousand hectares, the press service of the agricultural holding.
“We are fully satisfied with the weather conditions in which the sowing campaign takes place. Stock of moisture in the soil is quite sufficient. Warm weather since the beginning of May contributes to efficient seeding to get quality sunflower crops”, – noted in KSG Agroo.
During the sowing campaign there are three John Deere DB 55 sowing complexes involved, 700 hectares have already been sown with seeds from Syngenta, Limagrain and Euralis.
A year earlier, the agricultural holding sowed sunflowers on 8.4 thousand hectares. The average yield was 18 cwt/ha.
Vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grain and oilseeds. Its land bank is about 21 thousand hectares, which are located in Dnipropetrovsk, Kharkiv, Khmelnitsky and Kherson regions.
According to Agroholding, it is one of the top 5 pork producers in Ukraine.
In 2021, the holding increased its net profit by 16 times compared with 2020 – up to $20.27 million, its earnings – by 44%, to $30.75 million, and it increased EBITDA by half – to $12.28 million. The data for 2022 has not yet been published.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.


Ukraine will refrain from exporting grain and sunflower to Poland until new season – Minister

Ukraine will temporarily refrain from exporting grain and sunflower to Poland until the new season in order to solve the problem of overstocking the Polish market and protests of Polish farmers, the Polish Ministry of Agriculture and Rural Development reported, citing Ukrainian Minister of Agricultural Policy and Food Nicholas Solski.
“We all understand who is to blame for this situation, but we must solve the problem. Therefore, Ukraine will refrain from exporting wheat, corn, rapeseed and sunflowers to Poland (until the new season),” the Polish agency quoted Solsky from a joint press conference on Friday with his Polish colleague Robert Telus at the border with Ukraine in Dorohusk.
“The Ukrainian side made a proposal to very much limit for some time, and at the moment even stop the flow of grain to Poland,” Telus said, in turn.
As reported, April 5, Ukrainian President Vladimir Zelensky at a meeting with Polish Prime Minister Mateusz Morawiecki in Warsaw said that the parties have found a way out of the problem of Ukrainian grain exports to Poland.
“We discussed the issues of our farmers – Polish and Ukrainian. We have found a way out. I believe that in the coming days, weeks we will finally solve all the issues, because there cannot be any difficulties between such close partners and real friends as Poland and Ukraine,” Zelenski said.
Earlier, the governments of Poland and Romania announced their intention to ask the European Commission to develop mechanisms that would help avoid price dumping to the detriment of local farmers.
Polish farmers threatened to disrupt the events during Zelenski’s visit to Warsaw, and Polish Minister of Agricultural Policy Henryk Kowalczyk resigned.
If the international community had been able to “push” Russia to increase ship inspections in the Bosporus, Ukraine would have been able to reduce the flow of grain traffic through European countries, Solsky said then, in turn.

, , ,

Sunflower processing decreased to 4.48 million tons

Ukraine processed about 4.48 million tons of sunflower seeds in the four months of the 2022/2023 marketing year (MY, September-August), the lowest since 2015/2016 MY.
According to the APK-Inform agency’s website on Monday, oilseed processing was slowed by the crisis in the country’s energy sector, limits on electricity use and deliberate delays by the Russian side in inspecting vessels passing through the “grain corridor.”
According to the agency, a total of 10.4 million tons of sunflower may be processed in Ukraine in 2022/2023 MY, which is 10% less than the previous season, while the export of sunflower oil may decrease by 8% compared to the previous season and amount to 4.15 million tons, the lowest since 2015/2016 MY.
At the same time, a separate factor affecting oilseeds processing and sunflower oil exports in the current season was the growth of exports of sunflower seeds without processing – for September-December 2022, almost 1.2 million tons of them were exported from Ukraine, which was half of the analysts’ forecast for the entire MY.
“This figure is atypically high for the industry, it contributes to a significant increase in competition for raw materials, higher prices for them, even when the price of demand for sunflower oil decreases, and as a result – a more rapid reduction of sunflower supply in the market,” – the agency quotes its analyst Svetlana Kirichok.
She also stressed that one should not expect a substantial increase in processing, at least in February-March 2023, as the situation in the energy sector of Ukraine remains unchanged and the limits on electricity consumption are still in force. In addition, in March the “grain agreement” expires, which will require a new prolongation.
As reported, Ukraine from January 1-15, 2023 exported 93 thousand tons of sunflower seeds, which is 2.5 times less compared to the same period last year, while the export of sunflower oil halved to 148 thousand tons.