Oilseed crops in Russia may increase

According to forecasts, the area under most oilseeds this season should increase compared to the previous one.

It is planned that this year a total of about 17 million hectares will be sown with oilseeds in Russia.

This is an increase compared to last year, when 16.96 million hectares were sown with them. This data is provided by the information and analytical agency OleoScope.

At the same time, the area under individual crops may change differently.

For example, for sunflower there may be a slight decrease in the area to 9.55-9.7 million hectares, although last year it was about 9.82 million hectares.

This decline is explained by several factors.

Firstly, a decrease in export prices for this crop, and secondly, the presence of problems with seed material.

So far, Russian-made products are inferior to imported analogues, and there are difficulties with their supply to the country.

However, experts note that the profitability of oilseeds still remains high compared to grains, so we can hardly expect a serious reduction in the area sown under such crops.

As for all other oilseeds, in addition to sunflower, the area under them is expected to increase.

For example, the area under soybeans should increase to approximately 4 million hectares because it is a very marginal crop and there is currently competition for soybeans in the market.

The area under rapeseed should also increase to 2.3 million hectares, as many regions are going to increase its crops.

True, as in the case of sunflower, there is a problem with seed material.

Oilseed flax this year will most likely also show positive dynamics; about 1.5 million hectares may be sown with it.

In general, analysts note that the market is gradually recovering after the “overheating” of last year. Back then, massive supplies of oilseeds from Russia, Canada and Kazakhstan largely led to a collapse in prices, but now the situation is gradually returning to normal.

As for the processing of oilseeds, at the moment there should be no problems with this: the capacity in the country is sufficient to process almost the entire volume of the crop, and it is growing.

Over the past year, the increase was from 31.3 million tons to 33 million.

“At the moment, factories for the deep processing of oilseeds are already being built and launched in Russia, which is a new stage in the development of the industry.

We successfully produce unrefined oil and meal, and now we need to increase the production of higher quality products,” says OleoScope analyst Kirill Lozovoy.