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Sunflower seeds: shift in demand prompts different perceptions on buying

May 28, 2020 11:13 AM, Der AUDITOR
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SOFIA. Hailstorms have caused some concerns in Bulgaria. Demand has shifted as industrial bakeries are running shifts to keep up with demand.

Cheaper rates for the new crop

The rising prices for vegetable oil have driven up the spot market prices for black in shells with a 98% purity to EUR 353 EUR per metric tonne CPT Varna. This development is mainly attricbuted to the firmer prices for palm oil. Driven by demand in the EU palm oil was quoted 5.3% higher at MYR 2,180 per metric tonne in Malaysia on Wednesday. Although the recent hailstorms in Bulgaria have raised some concern over potential damages, rain has fuelled expectations that the prices for the new crop will decline. The extent of any possible damage prompted by the hailstorms still needs to be assessed. However, it should be noted that the weather in June is mainly decisive for yields. Prices have, nevertheless, declined for the new crop which is currently trading in a range of EUR 0.67-0.70 per kg DDP Germany, depending on supplier.

Sunflower kernels, Bulgaria

Quality

EUR/mt

Hulled, bakery, DDP Germany, 2019 crop

720-755

Hulled, bakery, DDP Germany, 2020 crop

670-700

Unhulled, 98% purity, CPT Varna

353

Trade sources

Notable shift in bakery demand

Trading activities differ widely in the bakery market as consumer demand has shifted from local bakeries to supermarkets. While some traders report that they only have occasional enquiries for spot purchases and that release orders are being postponed, others report that release orders are very frequent. Industrial bakeries are running four shifts a day to keep up with retail demand. While bakeries in Germany have, for instance, experienced a drastic decline in sales of 40%, retail demand for bread is up. A trend from which the sunflower seed market is profitting as many bread producers have switched from expensive seeds, such as pumpkin kernels, to the more inexpensive sunflower kernels. Retail demand is also reportedly up for salad seed mixes, which contain large volumes of sunflower kernels. Many buyers have also sold their supplies at relatively low rates and now require more expensive kernels. Bakery kernels are trading in a relatively firm range of EUR 0.720-0.755 per kg DDP Germany.

 

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