Argentine sunflower has been bought by Trans Oil Group
Speaking to the newspaper’s correspondent, Stella Ostrovetskaya, director of Floarea Soarelui SA, confirmed that the cargo of one vessel – 27.5 thousand tons of Argentine sunflower – will be delivered to Moldova and processed at the enterprise of the mentioned group of companies in the Giurgiulesti free economic zone. Sunflower oil and sunflower meal obtained from this raw material will be fully exported. The cargo from the second vessel will be delivered to the Trans Oil plant in Romania.
Will these facts affect the supply and demand situation and, consequently, the purchase prices for sunflower in Moldova?
According to experts’ calculations, taking into account purchase prices and related costs, the price of sunflower in Moldova may reach about 10.35 lei/kg.
At the same time, the actual price of Moldovan sunflower in the north of the country is at the level of 10,60 lei/kg. Taking into account the potential decrease of the US dollar exchange rate, there are reasons to assume that in the nearest future the “demand price” for Moldovan sunflower may fall below the level of 10.50 lei/kg.
Cheaper raw materials – more competitive exports
At the same time, it makes sense to take into account that cheaper raw materials also mean cheaper final products. That is, their growing competitiveness on foreign markets and higher chances for quick sales and settlements between the producer and raw material suppliers.
In this regard, it is worth recalling that in previous seasons the main complaint of Moldovan farmers to processors was not so much the level of sunflower prices as delays in payment for its supply to local processors.
It should also be recalled that, as Logos Press reported earlier, Bulgaria alone plans to import about 400 thousand tons of sunflower from Argentina in the short term. Some information resources in this context mentioned that the import of Argentine sunflower by all Black Sea countries may be almost twice as much. Consequently, the pressure of such volume of raw materials on the market of the region will be in any case.
Prices for Moldovan sunflower are likely to decrease regardless of whether it will be processed in Moldova or exported for processing to Bulgaria or Turkey.
