Russia announced they are now outlawing the export of sunflower seeds and placing new limitations on exports of meal and oil as well.
The seed export restriction will go into effect April 1 and last through Aug. 31. Beginning on April 15, the limit will be an export of just 1.5 million metric lots of sunflower oil. The quota will be in place up until Aug. 31. Likewise, Sunflower meal is subject to a 700,000 metric heap export quota.
The March 31 announcement originated from Russia’s agriculture ministry. In a recent statement, the ministry said the sunflower oil quota would “maintain the stability” of Russian supply.
“With sharp growth in global prices for sunflower oil and oilseeds, there is currently increased demand for the Russian product,” the ministry said in their last statement.
Ukraine and Russia are the world’s largest sunflower oil producers, per Reuters. Both of these nations typically supply 80% of the oil produced globally.
The Russian invasion of Ukraine upended several different food markets, including the international wheat, corn, and soybean industries. The sunflower seeds market has experienced constant cost boosts due to this intrusion.
Supply Management, the media branch of the Chartered Institute of Procurement & Supply, described how the cost of palm oil rose by 1,000% because in late February sunflower oil ended up being less readily available.
“A balanced market with a mix of different available vegetable oils is crucial for a robust and resilient global market,” a spokesperson for the Roundtable on Sustainable Palm Oil told the outlet. “Ukraine is the largest exporter of sunflower oil and seed, and as the rise in demand for palm oil is accelerated by halted sunflower oil production in the Ukraine, it is crucial that we support the production and consumption of sustainable palm oil to prevent any further negative environmental and social impacts.”
Presently, crude sunflower oil from Russia is being offered at $2,150 per metric load. The weather conditions in North America are now anticipated to have the most influence on the commodity’s price.
“The U.S. and Canada can fulfill some of this need and the market is giving the signal to plant sunflowers this year,” reports the Kiowa County Signal. “With the rise in new crop prices some producers are reassessing their crop mix for 2022 as sunflowers may now be the most profitable crop to grow this year.”
H/T Timcast
