Based on the introduction of a tariff quota on imports of sunflower seed and oil and reduced duties, import of sunflower seed and oil to Turkey may shift to period after the beginning of Jan, while last year active trade was present during Sep-Dec.

"Companies could choose to use the quota for either sunflower seeds or crude oil", said Bulent Ozsoy, Broker at Atria Brokers. The choice will largely depend on yields in the Black Sea region, demand for refined oil, prices of sunflower seeds and meals, and current and future prices for crude vegoils.

"Prices in the domestic market have already begun to rise. In the first two days after the announcement, sunflower seed prices have increased by 30 to 60 USD/MT, while crude sunflower oil prices have increased by 25 USD/MT. However, it is still too early to predict a confirmed trend due to the market's current shallowness", - added Bulent Ozsoy.

As a reminder, on 07 Aug 2024, Turkey introduced a tariff quota on imports of 1 MMT of sunflower seed or its equivalent 400 KMT of crude sunflower oil and reduction of custom duties from 27% to 8% for Sun seed and from 36% to 20% for sun oil.  But quotas will be allocated only to the companies purchasing domestic sunflower seed between 01 July 2024 and 30 November 2024 and will be applicable only for the period from 01 January 2025 to 30 April 2025.