The first ship with Ukrainian sunflower seeds set off for Turkey

Turkish importers have already secured their needs for October and are looking for shipments for delivery in November-December.

Ukraine has sent the first ship with sunflower to Turkey in the new season. This was discussed during Smart Monday, organized by ASAP Agri, writes Elevatorist.

Turkish importers have already contracted the necessary volumes for October and are currently looking for shipments mainly for delivery in November-December. In general, they have secured their needs for about a month in advance.

At the same time, export prices have noticeably dropped. If earlier agreements with delivery to the Sea of ​​Marmara region were concluded at a level of about $640/t, then at the end of last week sales were already recorded at $618/t. For comparison: in August, sunflower for Turkey was contracted at $655–660/t CIF Marmara. Bulgarian buyers also adjusted their offers downwards — by €5–8/t.

The cost of sea transportation remains a significant factor for exporters. According to market participants, freight to Mersin, Turkey, has increased in price by about half, from $50–55/t in July to about $110/t.

The issue of minimum export prices, which are used during customs clearance, also remains unresolved. In September, the Ministry of Economy increased the minimum allowable price of sunflower on a CPT basis from $414/t to $725/t, while domestic prices remained at $375–400/t excluding VAT with delivery to a processing plant.

Market participants are awaiting a decision on the application of a reduction coefficient. An alternative is an updated table of minimum prices, which the ministry plans to publish on October 10.

The arrival of the first vessel should show how such cargoes will be cleared in Turkish ports. Last season, there were cases when the documents and inspection results at the Ukrainian port did not raise any questions, but after the cargo arrived, Turkish regulatory authorities identified problems with its quality.

In general, the season promises to be more active than the previous one. According to Sunstone Brokers, in September-November, Ukraine can export about 200 thousand tons of new crop sunflower – more than five times more than in the ten months of the previous season.

Approximately 120 thousand tons can be purchased by Turkey, another about 80 thousand tons – by Bulgaria and Romania. After November, export opportunities are forecast to significantly decrease.

Earlier, USM in the Ministry of Agriculture reported that the export of sunflower oil continues via all available logistical routes.