Strikes on port infrastructure and logistical problems are forcing Russia to reduce maritime shipments of sunflower oil to India and more actively redirect exports to China via overland routes. Reuters reports this, citing a representative of one of Russia’s leading exporters, UNN writes.
Details
Problems with shipments from Black Sea ports arose despite strong demand from India. Russian and Ukrainian strikes on ports in the Black Sea region during the summer disrupted logistics and significantly complicated the use of deep-water terminals in the Azov–Black Sea basin.
Supplies of Russian sunflower oil to India are expected to decline to 1.1 million tonnes this marketing year, compared with 1.5 million tonnes a year earlier.
Russia is redirecting exports to China
Against the backdrop of problems with maritime exports, Russian companies are offering China sunflower oil at a discount and supplying it via overland routes. Supplies to China are expected to double, reaching 1 million tonnes.
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At the same time, sunflower production in Russia could increase from 17.5 million to 20 million tonnes this year. However, weaker export demand could lead to a reduction in processing and the accumulation of about 3 million tonnes of carryover seed stocks by the beginning of the next marketing year.
Ukraine is also facing export problems. Due to Russian strikes on port infrastructure and difficulties shipping oil to India, sunflower processing in Ukraine could decline by approximately half from October to March — from the usual level of around 600,000 tonnes per month.