MHP intensified soybean oil export in Q2 2020
In Q2 2020, MHP's soybean oil exports were at 10,841 t, 19% higher year-on-year, as a result of decreased stocks mainly.
Accumulatively for the first six months of 2020 – 21,609 t, 11% lower year-on-year, mainly as a result of a production decrease (decreased share of soybean cake in fodder and 3rd party sales).
In Q2 2020, the company's sales of sunflower oil decreased by 5% to 82,646 t compared to 86,661 t in Q2 2019, mainly driven by a decrease in the production of oil as a result of a decreased share of sunflower cake in fodder; in H1 2020 sunflower oil exports constituted 163,356 t, which is 12% lower year-over-year.
The decrease in volumes in H1 2020 is driven mainly by a decreased entry stock as of 01 January 2020 as a result of delivery terms change from DAP to FOB, the company notes.
"The company considers vegetable oils exports as one of the "natural hedge" routes accumulating additional hard currency revenues and protecting the company from volatilities in local currency," the report reads.
In September-May 2019/20(September-August), Ukrainian soybean oil exports reached an all-time high level of 260 thou. t, +6% YoY.