Prospects for oilseed market

In recent years, cereals and oilseeds industry were the Hungarian agriculture’s most integrated sectors at the international market. However the recent price fluctuations and the saturation of the European biofuel markets are discouraging the investors.

The oilseeds export in the recent years developed very hectic. The Hungarian Export Fund is characterized by fragmented holding structure, a wide variety of choices and qualitative differences, that’s why Hungary’s competitors have advantage – states the analysis of the Hungarian Chamber of Agriculture. The relationship between producers and traders is also problematic, there is a lack of trust and of contract discipline between many participants in the market. It is typical for the price fluctuation that last year both the price of rape and sunflower-seed was 115 thousand HUF / 1 ton. This year rape’s price is more than 85 thousand, the price of sunfloweer-seed is 68 thousand HUF. Early in the spring rape crop condition had good perspectives, but due to the dry spring and the insects crop prospects are are not too good.