Turkey is a key player in the Black Sea market of sunseed and its products. In its pursuit to reduce the dependence not only on feedstock imports but also on foreign sunmeal and sunoil, the country draws the attention of both major Black Sea exporters (Russia and Ukraine) and minor ones (Bulgaria, Moldova, and Romania).
In the conditions of excessive crushing capacities and growing domestic demand for sunseed products, an important task for Turkey is stepping up sunseed production.
Over the last decade, the most successful for Turkish farmers was the 2013/14 season, when they managed not only to expand plantings to a record 690 Th ha, but also to get a nearly maximum yield of 2.03 MT/ha. As a result, the sunseed harvest hit an all-time high of 1.4 MMT.
Following a slump in MY 2014/15, sunflower planted acreage has recovered over the last three seasons and totaled 600 Th ha in 2016/17.
It is obvious now that the new marketing year 2017/18 becomes the most successful for Turkish sunseed growers not only due to a planted acreage expansion to a record 700 Th ha, but also because of favorable weather that resulted in the highest yield of 2.46 MT/ha. So, the crop amounted to 1.6 MMT.
In addition, all market participants are glad about oil content in sunseed in the new marketing year 2017/18: its value grew to 45 percent against last season’s 43.5 percent, even to 46-47 percent in some parcels.
Turkey’s domestic needs for sunseed and its products are high and they have been rising over the past three seasons. However, the current season brings downward adjustments to forecasts for sunseed complex imports in favor of local growers and crushers. It’s safe to say that the government policy aimed at supporting the sector and protecting own growers has produced a positive effect.
Turkey, though remaining the world’s second largest sunseed importer, will reduce purchases of this commodity in foreign markets to 500 KMT in MY 2017/18 (down 91 KMT year-on-year). Also, the country will cut sunoil imports to 700 KMT (down 93 KMT) and may increase sunmeal purchases to 1000 KMT (up 42 KMT).
The new 2017/18 season will show if this decline will be appreciable for Turkey’s key exporters, i.e. Russia and Ukraine.
Since Turkey is Russia’s strategically important partner, which absorbed 74 percent of Russian sunseed exports, 28% of sunoil and 41 percent of sunmeal exports in MY 2016/17, it is Russia which is to be afraid of such trends and consider the above changes when building its export strategy.
The more so as we witness “trade wars” between these nations from time to time and this becomes the case again in October 2017.
It is worth noting that the statistics of the first month of 2017/18 confirms our concerns and shows a drop in export flows of these commodity groups.
However, the above is going to be somewhat offset both for Russia and Ukraine by a sunseed crop shortfall with consequently decreased exportable stocks of this oilseed and its products in the new 2017/18 season.
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
3 tips that will help you define your brand voice
How to use your kindness in the office to your advantage
Legendary American singer Aretha Franklin dies at 76
3 biggest myths about how to write a good business plan
Buying your next car? This legal advice will guide you
‘Phenomenal’ PotNetwork a ‘Strong Speculative Buy’ according to Harbinger Research
PepsiCo CEO Indra Nooyi to step down this October
How to invest in Bitcoin with your IRA
Multibillion-dollar mixed-use tourist center opens in Montenegro
5 ways you can save money by house sitting
Strengthening the cooperation among countries to generate inclusive growth
H&R Block and IBM Watson are revolutionizing tax preparation
IMF message: Interconnectedness needs to be preserved
Can we use smartphones while driving 100% safely?
Innovative electricity tech from ABB provides better life
Featured5 days ago
Investors seek help from academics to better understand sustainable investments
Business4 days ago
How technology is disrupting the metal fabrication industry
Crypto4 days ago
Survive the collapse of altcoins with these crypto investing tips
Commodities5 days ago
India may fall short of ambitious solar power capacity target by 2022: Ciril
Featured5 days ago
What do you need to start investing online?
Featured5 days ago
Jim Cramer believes US stocks stood their ground this year—here’s why
Agriculture4 days ago
Sugar, soybean and wheat prices down for the week
Featured3 days ago
10 lessons that every young entrepreneur should learn from Walt Disney