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Sunflower seed kernels: Price situation worse than feared

October 28, 2016 at 7:48 AM , Der AUDITOR
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SOFIA. Market participants are stunned. Eastern Europe is realising its worst nightmares.

The price shock is no longer just a threat, but bitter reality.

Market participants in Eastern Europe can only shake their heads in dismay, because prices are climbing and climbing. Bakery-type sunflower seed kernels currently already cost 640 EUR/mt FCA. The reason for this is a simply unbelievable interaction of incredibly many factors.

The price boosters
The harvest turned out significantly worse than alleged still in summer. Apparently, the extreme drought in July and August has left its marks. The Eastern European oil mills are an additional factor, insofar as that they increased their production because the worldwide demand for sunflower seed oil is high. Thus, raw sunflower seed prices have already increased to 350 EUR/mt CPT Varna. The primary problem, however, is the absence of exporters from India, and China. Their own crops cannot even cover the local demand, so they have to effect additional purchases in origins such as the Ukraine, and Bulgaria.

Fears are surpassed
Several traders see their fears confirmed. Rumours of continuing low prices for this year revealed themselves as pure speculation. Prices were understated at the beginning of the season. Over time, stocks will decrease, and prices will rise further. The increasing raw sunflower seed prices have also driven up prices for bakery-type produce already, with the price level at 645-650 EUR/mt FCA.

sunflower seed kernels, Eastern Europe

type

EUR/kg

bakery, DDP Germany

0.720

raw seeds, CPT Varna

0.350

oil seeds, Budapest Stock Exchange

0.329

 

Attached Files

File icon
sunflower kernels, hulled, bakery, 99.95%, 1.1 - 0.5
File icon
sunflower seeds, unhulled, black, 0.509 - 0

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