High-oleic sunflower premium upheld by reviving demand for Ukrainian sunflower oil
The premium for high-oleic (HO) sunflower in Ukraine has risen considerably since the beginning of 2021/22(September-August) driven by the rise in the price of high-oleic sunflower oil on the export market, the APK-Inform consultancy writes.
In January, premiums for this crop are mostly in the range of USD 20-35 a ton versus USD 10-30 at the beginning of the current season. The premium for high-oleic sunflower oil compared to the price for conventional products is in the range of USD 200 per ton.
"Production cutback of high-oleic sunflower in Ukraine in 2021, reduction in processing rates and, consequently, short offer of high-oleic oil on the back of growing demand for the product in the external markets, particularly from the European countries, are the main factors contributing to the increase in the premium. Holding back of sunflower sales by producers is an additional barrier to production and exports of this type of vegetable oil," the message reads.
High-oleic sunflower output in Ukraine in 2021 decreased by 11% YoY, to nearly 900 thou. t, with sunflower area in the country 21% lower, analysts estimate.
"A significant decrease in premiums in 2020/21 MY was triggered by the fall in consumption of high-oleic sunflower oil by the HoReCa segment, a key consumer globally, as a result of the COVID-19 pandemic," analysts observe.
Previously reported that the dollar value worth of sunflower oil exported from Ukraine in 12M 2021 grew to USD 6.4 bln.
The Ukroilprom projection for sunflower oil output in Ukraine in 2021/22 is 24.1% up YoY, at over 7.2 mln t.
Crude sunflower oil production in Ukraine in 2020/21 totalled 4.7 mln t. Refined sunflower oil output by crushers in Ukraine made up 745.3 thou. t.
In late December, the Government of Ukraine imposed price regulation on sunflower oil having added it to the list of goods of significant social importance.
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