Ukrainian oil producers plan to cut sunflower oil output 5% yoy

Ukraine will produce 3.6 mmt of sunflower oil this season, or some 5% less yoy, the domestic association of oil producers Ukroliyaprom informed via Interfax last Friday. Export of sunflower oil is also going to decrease 5% this season to 3.1 mmt, according to the same source. In the 2011/2012 production season, Ukraine increased sunflower oil production 29% yoy to 3.26 mmt, the association reported.  

Alexander Paraschiy: We view Ukroliyaprom’s production estimates as realistic – the decline in sunflower oil production looks inevitable due to a decrease in the sunflower seed harvest. Based on the association’s outlook, Kernel’s (KER PW) plan to increase sunflower seed crushing 4% yoy this season looks achievable in case it increases its market share in Ukraine by roughly 3ppyoy.