Russia’s Demetra, one of the leading agricultural trading and logistics firms in the country, has been actively purchasing substantial quantities of sunflower seeds throughout October, driven by rising global and domestic prices.
Purchase Details:
Market sources estimate that Demetra acquired between 150,000 to 200,000 metric tons of sunflower seeds during the month, with one source specifically citing a figure of 200,000 metric tons. The seeds are primarily sourced from the Saratov and Ulyanovsk regions.
A representative from Demetra confirmed the purchases but suggested that the reported volume of 200,000 metric tons was overstated, emphasizing the firm’s focus on the domestic market.
Market Context:
The Russian sunflower seeds harvest is projected to decline by nearly 10% this year, totaling approximately 15.7 million tons.
According to Sovecon consultancy, wholesale prices for sunflower seeds have increased by over 10% since the beginning of October.
Company Strategy:
Demetra has been enhancing its capabilities not only in exporting agricultural products but also in catering to the domestic market’s needs. The company operates a comprehensive network of grain elevators and deep-sea grain terminals, along with its own logistics infrastructure.
Additionally, Demetra holds a non-controlling stake in the prominent grain trader United Grain Company.