Last week, prices for sunflower seeds and sunflower oil slightly decreased in the European part of the country. The purchase price of oil decreased by 100 rubles, reaching 84.5-86.6 thousand rubles per tonne, depending on the region, and sales prices also decreased by 100 rubles to 86-88 thousand rubles per tonne. The purchase price of sunflower seeds also decreased by 100 rubles, reaching 37.4-38.7 thousand rubles per tonne, and the selling price decreased by 100-300 rubles to 38-39.7 thousand rubles per tonne. Export prices for oil supplies in May remained unchanged at $1,115 per ton for offers and $1,090 per ton for demand.
According to the report by the analytical company "ProZerno," last week the price for a ton of sunflower seeds was around 43.7 thousand rubles (including VAT), increasing by 265 rubles in a week. The CEO of the company, Vladimir Petrichenko, notes that there were no significant changes in sunflower seed prices, however, prices for seeds and oil slightly decreased. He also notes that the future price dynamics will depend on the export duty on oil and meal. According to his expectations, the duty may decrease from the current values for oil and meal. This is due to stable export oil prices and a stronger ruble exchange rate. However, Petrichenko believes that significant growth or decline in domestic prices is not expected.
The reduction in sunflower seed prices by 250-300 rubles per ton, observed earlier, does not solve the issue of negative processing profitability, according to Mikhail Maltsev, Executive Director of the Fat-and-Oil Union. He notes that at current sunflower seed prices, processing companies' losses can reach 5 thousand rubles per ton. Therefore, he expects a more significant adjustment in sunflower oil prices in line with market conditions. Dmitry Rylko, CEO of the Institute for Agrarian Market Conjuncture, confirms that reducing the sunflower seed price by 250-300 rubles per ton will not significantly affect the profitability of processors, and a significant correction is needed.
According to the Fat-and-Oil Union, as of April 1, the processing loss of sunflower seeds was 11%, with a purchase price of 40.7 thousand rubles per ton and revenue of 37.49 thousand rubles per ton. Maltsev notes that the negative margin is due to the difference in sunflower seed prices, current market conditions, the ruble exchange rate, and export duty.