A week ago, old crop sunflower prices at the North Dakota crush plants were down 35 to 65 cents, with 2023 new crop down 30 to 50 cents. Old and new crop prices were down 50 cents at the Lamar, Colorado, plant.
According to the U.S. Department of Agriculture March Planting Intentions report, growers intend to plant 1.36 million acres of sunflowers in 2023, down 20% from 2022.
Using a trend yield, the initial estimate of 2023 U.S. sunflower production is pegged at 2.3 billion pounds, which would represent a decrease of 18% from last year. Most of the reduction is anticipated in oil-type sunflowers, with intended acres at 1.20 million down 22% from 2022.
Based on intended acreage and using a trend yield, oil-type sunflower production may decline to 2 billion pounds in 2023 down 22% from last year. The USDA report showed planting of sunflower acres much lower than expected by the trade.
With lower than anticipated acres, diversifying market risk with some sunflower acres would be a good option in 2023.
In addition to demand news and planting progress, traders continue to monitor the situation in the Black Sea area. Talks are taking place as officials try to hammer out an extension to the Black Sea Grain Initiative that’s keeping agricultural products flowing out of Ukraine.
Failure to extend the agreement would strangle global supplies as it would restrict current Ukrainian shipping paces and deter Ukrainian farmers from planting more acreage this spring.
