03 Nov 2021 US demand looks positive!
USDA Foresees 44% Hike in Crop Size vs. 2019
USDA released its first production estimate for the 2020 sunflower crop in October. The forecast is for a harvest of all types of 2.81 billion pounds, 44% higher than in 2019 and the highest since 2015.
Growers planted 1.7 million acres in 2020 a 10% increase from the June estimate and a whopping 26% higher than last year. Favorable harvest conditions are allowing for an expected 1.62 million acres harvested up 29% from 2019.
Uncertainty in the commodity market, low seed inventories from a poor 2019 crop and strong oil demand both domestic and international contributed to improved Sunflower prices last spring. Act of God contracts were $1/cwt higher than the previous year making sunflower attractive versus other commodities.
2021 US demand looks positive!
Per Oil World, global sunflower production for 2020/21 is forecast down 4.8 million metric tons (MMT) to 51.0 MMT from last year’s total and represents a three-year low. Drought-related yield reductions in the Black Sea region and area reduction for Argentina are mostly responsible for the decrease. Nearby NuSun and high oleic prices at US crush plants were up 30 to 50 cents on November 9 following the rally in the soy complex on the Chicago Board of Trade*. 2021 new crop prices were quoted in the $18.30 to $18.60 range. These prices will continue to position Sunflower as a viable crop choice for 2021 planting.
* NSA Sunflower Highlights November 9,2020