By early September, compared to the market situation at the beginning of August, sunflower prices in Moldova increased by 15-40%, while the price of rapeseed is stable. Thus, at the beginning of last month, the price of sunflower for the 2024 crop averaged 8.5 lei/kg (including VAT). The demand from Moldovan traders (who concentrated on exporting other commodities, in particular, wheat) was relatively low. Sunflower was purchased mainly by small local processors, and prices stagnated, but at a rather high level.
However, as the information field of the Black Sea countries began to multiply information about bad sunflower harvest in the southern regions of Ukraine, and new harvest sunflower appeared on the Moldovan market, the price for this commodity began to grow. By the end of last week, the “bid price” for Moldovan sunflower (both last year’s and new crop) was fluctuating within 9.60-11.26 lei/kg ($580-677/t). The wide price range was due to different sizes of offered lots, quality and terms of goods supply (including or without VAT).
Also, the price traditionally depends on the region of delivery: the goods are almost always cheaper in the north and more expensive in the south. However, at the moment the price difference in the regional context, compared to the situation of the last season, is decreasing. At the moment, the “lag” is no more than 0.15-0.32 lei/kg. The purchase price (including VAT) in both northern and southern regions of Moldova is now confidently above 10 lei/kg.
Apparently, the determining role in the process of “equalization of prices” for oilseed raw materials between the northern and southern regions of Moldova was played by the fact that the largest operator of oil and fat industry Floarea Soarelui SA (Balti) has resumed its work this season after a long technical downtime. The company is currently buying both rapeseed and sunflower for processing. The price of the former is close to 9 lei/kg, the price of the latter – over 10 lei/kg.
In mid-August, the administration of Floarea Soarelui SA officially announced the launch of a new industrial complex for rapeseed processing with a capacity of 1 thousand tons of raw materials per shift. The company plans to process 45 thousand tons of rapeseed by mid-September. Also its management reminded about the potential of sunflower processing – about 300 thousand tons per season.
It should be said that Floarea Soarelui SA offers farmers prices for raw materials not lower than the prevailing market prices and stimulating conditions of cooperation – discounts on condition of signing contracts, prompt payment schedule for accepted products. In other words, the largest oilseed processor in the north of the country is making an attempt to restore its role as a price-forming enterprise. If it succeeds, the leader of the Moldovan processing industry will become, at least, a regional catalyst for the growth of prices for rape and sunflower.
However, in the center and in the south of the country traders-exporters still act in this capacity, and they are not few – four or five large companies, with which several smaller enterprises are affiliated. In other words, there is a rather fierce competition in the Moldovan market of oilseed raw materials.
It is also important that there is no ministerial forecast of sunflower harvest-2025 yet, and it is unlikely that market operators would take it as an axiom. And expert forecasts of sunflower production, one of the most monetary field crops, started to diverge in opposite directions as the harvesting campaign progressed. Thus, according to traders’ observations, more than 800 thousand tons of sunflower will be harvested in the country. Farmers tend to believe that the total harvest will be at best about 700 thousand tons. Last year’s marketable residues of sunflower according to one version – up to a hundred, according to another – only tens of thousands of tons.
With such a market arrangement, convenient for the farmer, the classic “seller’s season” is coming up – the latter are in no hurry to sell sunflower to traders or processors for the offered money already during the harvesting campaign. Many agricultural producers who have the opportunity to wait, most likely in the fall will try to hold sunflower in warehouses until the period of “maximum price”. The only question is when it will come and how long it will last.
There is an opinion, among others – voiced by Yuri Rizha, an expert in agro-marketing, that the best time to sell sunflower is now, in September. The demand and price for this raw material in the region are already quite high. At the same time, the largest players – Ukraine and Russia – have not yet entered the market with the main volumes of goods. When this happens, the situation with demand and prices may change not for the better. And the risks and costs will increase.
