W51: Weekly Sunflower Update

Global

Record Global Sunflower Exports in 2022

In 2022, the global trade in sunflowers will surpass 5M MT, which will be a record high. Exports of oilseeds were estimated at 2.2M MT last year. This is mostly attributable to Ukraine, which this season switched its focus from the supply of completed goods (oil and meal) to the sale of raw materials due to a significant energy crisis that prevents oil refineries from operating in the nation. Preliminary estimates indicate that in 2022, 2.7M MT of seeds will be exported from the country, up from 100K MT in 2021 and 200K MT in 2020. Bulgaria, Romania, Hungary, and Turkey received the largest shipments of Ukrainian sunflowers. As a result, this year's imports of sunflower seeds into the EU increased by 2M MT.

USDA Lowers 2022/23 Global Oilseed Production Forecast by 1M MT

Due to decreased yields of cottonseed, palm kernel, rapeseed, and sunflower seed, the United States Department of Agriculture (USDA) has decreased its prediction for world oilseed production in 2022/23 by 1M MT. However, because Ukraine's sunflower seed exports have increased, the USDA has increased its prediction for the oilseed trade. Despite greater crushing predictions for EU sunflower seed, processing of Indonesian palm kernels, EU soybeans, and Ukrainian sunflower seed was less than anticipated, which led to a slight decrease in global meal production.

Due to lower volumes of palm kernel oil, as well as fewer exports of Ukrainian sunflower seed oil and Canadian rapeseed oil, the prediction for world oil production has been revised downward. Similarly, the forecast for global oil commerce has been revised downward.

Russia

Russia Has the Potential to Increase the Supply of Agricultural Products to Egypt by 79.6%

Russia has the potential to increase Egypt's agricultural product supply by 79.6% by the end of 2022 compared to the amount for 2021. The key agricultural products with the highest export potential, according to their data, are wheat, corn, sunflower and soybean oils, frozen fish, and dried legumes. Wheat (84.6%), sunflower oil (10.6%), soybean oil (3.2%), dried chickpeas (0.3%), cake and meal from sunflower seeds (0.3%), and soybean oil (3.2%) made up the bulk of Russian exports to Egypt in 2021.

Oilseed Harvest in Russia in 2022 Will Amount to 29.2M MT

Domestic agricultural farmers will harvest a record 29.2M MT of oilseeds in 2022. Likewise, experts reduced their projection of the global sunflower harvest by 250K MT, to 16.46M MT. This is because the Volga region and the center of the areas will be unable to harvest until the end of the year due to recent heavy rainfall and expected warming in the coming weeks.

3.4M MT of Grains Were Harvested in the Penza Region, Russia as of W51

As of December 20, the Penza region's grain crops had been harvested from 843.7K hectares, or 98.9% of the projected area, and the gross grain harvest was 3.41M MT. As of December 20, sunflowers were still being harvested in the Penza region, covering 265.1K hectares, or 82.3% of their total area. The average yield was 19.0 q/ha, and the total harvest was 493K MT. The largest quantities of sunflowers were harvested for 46.4K MT, 36K MT, and 35.4K MT, respectively, in the Belinsky, Penza, and Serdobsky regions.

Sunflower Still Remains in the Fields in the Voronezh Region of Russia

Sunflowers in the Voronezh region were harvested until the beginning of December. However, about 3% of the uncultivated areas under oilseeds still remain in the fields of the region. Technically, sunflower harvesting in cold weather was possible. But as predicted, the "old" and frostbitten seeds, turned out to have a rancid taste due to the increased acid number. Such raw materials are no longer acceptable for the production of sunflower oil and therefore may only be added to the diet of farm animals. As a result, it was decided not to harvest any of the "December" sunflowers at all but to plough them next spring.

In Russia, the Rostov Region Will More Actively Replace Imported Seeds

The proportion of Russian seeds in the Rostov region will increase in the following season. In particular, during the sowing season of 2023, Don farms will replace more than 30% of their imported seeds with domestic ones. So, in 2022, the sowing of seed plots under corn was increased by 2 times, and by 4 times under sunflower. As a result, 14% of regional corn seeds and 31% of regional sunflower seeds will be used to sow this crop the following year. The proportion of domestic materials will continue to rise in the future.

Kazakhstan

Kazakhstan Earns USD 115M From Sunflower Seeds Exports

Statistics from the State Revenue Committee reveal that in the first nine months of 2022, Kazakhstan exported 223K MT of sunflower seeds worth USD 115M, an increase of 77% YoY. The average export price for the year was USD 515/MT, a rise of 8.8%. The Ministry of Agriculture also said that for the first eleven months of 2022, Kazakhstan's production of sunflower oil climbed significantly by 66.6% YoY.

Argentina

A Large Part of the Projected Hectares of Sunflower Are in Good and Normal Condition

The 2M Ha of oilseeds anticipated for the 2022/23 campaign has already begun to emerge, strengthening their growth and development. Although the absence of rainfall in the agricultural region to the north reduces the prospective yield, on the other hand, the productive potential in the south is still very similar to the averages of the previous campaigns. At the national level, 82% of the farms report that the crop condition is between good and normal.

Turkey

Turkish Grain Board Announces Tender for the Import of Sunflower Oil

The Turkish Grain Board (TMO) announced an import tender for 24K MT of crude sunflower oil to strengthen its stocks and prevent possible price increases in the domestic market. Within the scope of the tender, 18K MT of crude oil will be delivered to Mersin and Iskenderun ports, followed by 6K MT of crude sunflower oil delivered to Tekirdag port in three separate lots. A total of 24K MT of crude oil is expected to be procured between January 2, 2023, and February 15, 2023. TMO imported crude sunflower oil in February 2021 for the first time in its history. Later, sunflower oil imports continued from time to time to control the rising prices. The last time, 18K MT of crude sunflower oil imports were tenderized by TMO on April 28, 2022.

Spain

The Lack of Rain and the Heat Aggravate the Stress of Agricultural Production

The area set aside for sunflowers would increase by 30% from the previous campaign and total 92.7K hectares. The two variables that had the most influence on the decision to sow were the crop's tolerance to limited weather circumstances and the global decline in supply that improved its profitability. The province's sunflower planting would have come to a close in the first days of December when the lots would have had plants growing between three and nine pairs of true leaves. Rains are anticipated to reduce stress since, in the absence of pests and/or diseases, the crop confronts hydric stress from a shortage of water and thermal stress from high temperatures across the province. and minimize future risks.