2022-10-15 | Shippers from Inner Mongolia withdraw their offers with immediate effect
The lockdown in the Inner Mongolia province, which has been imposed since this week, has consequences for our pumpkin seeds. Our shipper from the province has withdrawn all outstanding offers with immediate effect. Until the middle of this week, the offers from Inner Mongolia were by far the cheapest. In contrast, the lockdown in Heilongjiang province, which has been in place for 4 weeks, has already led to significantly higher cost prices and was recently quoted at a good USD 400.00 higher.

2022-10-14 | Inner Mongolia and Heilongjiang provinces are in lockdown
Both main pumpkin seeds producing provinces, Inner Mongolia and Heilongjiang, are in lockdown. No plant is producing, and no forwarder is transporting any product. We are running out of supply and current spot inventory very soon. Prices must go up under such circumstances.

2022-09-21 | Bulgarian exporters cut off their shelling capacity massively, and new crop sunflower production is down
The impact of the Ukrainian war has a striking change in the Bulgarian shelling industry. Lloyds Auditors are reporting from failed unannounced on-site BRC inspections because factories were still closed or shut down. We heard that one of the largest de-huller closed 2 out of 5 factories. Other main processors have not restarted production since they closed it for annual maintenance.

2022-10-13 | Raw material prices for sunflowers have been rising since last weekend and are likely to lead to price adjustments for sunflower seeds in the medium term

The increasingly patchy energy supply in Ukraine is crippling the production of agricultural commodities and precursors (crude oil) and their loading, shipping, etc., as plants can no longer produce due to black outs and ports cannot operate. Ukrainian sunflower seed prices have risen to USD 590.00 + 600.00 p.MT FOB. Bulgarian farmers, for their part, have raised raw sunflower prices from USD 520.00 p.MT last to USD 570.00 p.MT FOB today. Even at this price level, we are still below the break-even price for farmers.

We estimate that stocks of sunflower seeds in Western Europe are down to 50% compared to the previous year 2021 at this time. The importers' strong buying restraint has the obvious aim of being able to demand ever lower prices. This worked until last week. In the meantime, however, many small and medium-sized hullers have stopped production and the large hullers are only producing the quantities that have been firmly ordered. Any capacity gaps are being adjusted to the reduced demand by partially closing plants or shutting down production lines.

The contracts for sunflower seeds recently concluded at a very low level are based on a mixed calculation. Some hullers were able to sell sunflower seeds at a very high level around EURO 2,000.00 p.MT DAP in spring 2022. The background at that time was the fear of the buyers that the entire supply could collapse due to the Ukraine war. Some hullers are now mixing these high prices with the recently very low sales prices, which do not cover costs. However, this calculation and assumption do not work out. We hear of very sluggish purchases from the high-priced contracts on the grounds that the buyers, for their part, are selling less product.

Summary: We expect rising prices for sunflower seeds and consider the current level to be the price low

2022-09-16 | SHINE SKIN prices are going up
Current quotes for SHINE SKIN are very low. This concerns the former good crop forecast. Today`s weak Chinese Yuan against the USD promotes sales in USD. We expect a recovery of the Chinese economy with gaining YUAN. Farmers are currently harvesting the SHINE SKIN kernels, and yields are low. Consequently, exporters are afraid to sell too cheaply.