W6 Sunflower Update: USDA Reduced Global Sunflower Harvest Forecast for 2023/24 Agricultural Year to 55.08 MMT

USDA Lowers World Sunflower Harvest Forecast for 2023/24 MY

The United States Department of Agriculture (USDA) has revised its forecast for the global oilseed harvest in the 2023/24 agricultural year, lowering it to 659.4 million metric tons (mmt). The estimate for sunflower production decreased from 55.54 mmt to 55.08 mmt. This adjustment may be due to the varying impacts of weather conditions on crop yields.

EU Sunflower Production Expected to Reach 10.7 mmt for 2024/25 MY

For the 2024/25 marketing year (MY), sunflower production in the European Union (EU) is projected to increase to 10.7 mmt, representing an annual increase of 0.8 mmt. Sowing plans remain steady at 4.9 million hectares (ha) for sunflowers, with no changes compared to the previous year.

Russia Anticipates Rise in Sunflower Oil Exports to Türkiye in 2024

Türkiye has historically been a top importer of sunflower oil from Russia. Predictions indicate that Russia will further boost its export levels of sunflower oil in 2024. Türkiye is recognized as the primary purchaser of sunflower oil in the Black Sea region and requires approximately 1.4 mmt annually to meet its domestic needs. However, Türkiye's dependence on Russian sunflower oil has waned in recent years. The "grain agreement" implemented in 2022 facilitated Ukraine's entry into the Turkish market, resulting in increased oil production in Ukraine and a consequent reduction in import volume from Russia. Furthermore, Türkiye significantly exported sunflower oil from Ukraine in 2023.

Sunflower Oil Imports Declined 19% MoM in Jan-24 Amid Rising Prices in India

In Jan-24, sunflower oil imports declined 19% month-on-month (MoM) to 211 thousand metric tons (mt), attributed to rising oil prices caused by increased freight rates following attacks on Red Sea vessels. Consequently, India's total edible oil imports decreased by 9.2% MoM. India primarily purchases palm oil from Indonesia, Malaysia, and Thailand, while soybean and sunflower oils are imported from Argentina, Brazil, Russia, and Ukraine.

Ukraine Simplified Sunflower Seed Exports to Bulgaria

The Ukrainian Cabinet of Ministers has simplified the export conditions for sunflower seeds to Bulgaria by establishing an automatic licensing regime, replacing the previous non-automatic one. Previously, the government had introduced verification and approval requirements for exports of certain agricultural products, including wheat, corn, rapeseed, and sunflower, to Bulgaria, Romania, the Slovak Republic, Hungary, and Poland. Entrepreneurs found violating export rules to these countries will face a six-month verification deprivation.

Kazakhstan's Sunflower Export Duty Proposal from February 15, 2024

The Grain Union of Kazakhstan proposed canceling export duty on sunflower exports from February 15, 2024, to support farmers during the sowing season. They base this proposal on data from the Bureau of National Statistics, showing Kazakhstan's sunflower reserves as of January 1, 2024, totaling 1.074 mmt. The Union predicts imports of oilseeds from January to October to reach 195 thousand mt. Considering processing volumes and projected demand, they estimate the export potential of sunflower for Mar-24 to Oct-24 at 226 thousand mt, averaging 32 thousand mt per month, with a projected export of 300 thousand mt for the 2023/24 MY, a 9% year-on-year (YoY) increase.