Reducing the cost of export of Russian sunflower oil

The cost of exporting Russian sunflower oil began to fall for the first time in recent months. For 1 ton of quotes by the end of May amounted to $ 735 - two percent lower than the figures for April.Together with the expected record yield of sunflower, the oil is reduced in cost, which makes the participants of the trade worry. They predict a collapse of prices closer to the autumn to about $ 720 per 1 ton.Back in April, the cost per ton was kept at around $ 750, and in May - fell to $ 735 (FOB). Director of the company "Sovecon" Andrei Sizov stipulated that this is the first of the forthcoming decline in quotations.On the territory of the Russian Federation, sunflower was sown on an area of ​​7.4 million hectares as of July 1. In the past season - only 6,9 hectares. Analysts of "Sovecon" suggest that the territory of the planted area will increase to 8.1 million hectares and yield will bring 11.5 million tons of sunflower, compared to 10.5, collected in the previous year.The first forecasts specialists will publish only at the end of June, taking into account the average indicators of weather characteristics. Now the risks of bad weather persist, especially in the south of the country.Andrei Sizov believes that the decline in the cost of exports is also due to the characteristic decline in demand of importing countries that have already procured seed stocks and are preparing for the coming season.However, in Russia sunflower oil continues to rise in price against the background of a decline in export prices. Analysts expect to say that the rapid rise in the cost per seed has provoked a drop in the profitability of processors to the level of July 2016.The assumptions of Andrei Sizov are that the current decline in the cost of sunflower oil can foreshow quotes significantly lower at the beginning of the new season.