Oilseeds remain the only profitable segment of crop production in Russia
Russia’s 2026 oilseed harvest is forecast at a record 35–36.4 million tonnes, driven by higher sunflower seed and rapeseed output, despite declining soybean production. Oilseeds remain more profitable than grains, but rising supplies have pushed sunflower seed prices down 3–6% weekly, narrowing farmers’ margins.
Russia’s total oilseed harvest in 2026 is estimated at a record 35–36.4 mln tons, up 1.9–5% from last year. Sunflower seed production increased by 11–20% to 19.9–21 mln tons, while rapeseed output rose by 11–25% to a record 6.2–7 mln tons. Meanwhile, soybean production declined by 11–13% to 8–8.5 mln tons.
Against the backdrop of losses in grain production, oilseeds remain virtually the only profitable segment of crop farming. In July–August 2026, sunflower seed margins reached RUB 17–21 thsd/t ($213–263/t), which was 2–2.5 times higher than wheat margins even in the most profitable years.
Sunflower seed production costs at medium-sized farms are estimated at RUB 22–25 thsd/t ($275–313/t), while selling prices at the seasonal peak reached RUB 42–46 thsd/t ($525–575/t). This gap provided farmers with significantly higher profitability compared with grain crops, whose prices remain under pressure.
However, the record oilseed harvest has already begun to weigh on the domestic market. As new-crop supplies increase, sunflower seed prices are falling by 3–6% per week, reaching RUB 39–41 thsd/t ($488–513/t) by October. As a result, margins narrowed to RUB 14–17 thsd/t ($175–213/t). Nevertheless, oilseeds remain the main source of profit for Russian farmers.
To Read more about Edible Oil News continue reading Agriinsite.com
Source : UkrAgroConsult
