W21: Sunflower Update

In W21 in the sunflower landscape, the EU cut its import of vegetable oils from July 2022 to mid-May 2023 by 20% to 5.7MMT compared to the same time in the 2021/22 season, with a decline in sunflower oil production of 15% to 1.5MMT. This is due to the significant import of raw materials from EU countries, which contributed to an increase in the supply of self-produced oils in domestic markets. The European Commission declared that it is prepared to extend import restrictions on rapeseed, sunflower, wheat, and maize from Ukraine after June 5 after the decision to extend the duty-free regime (independent trade measures) for an additional year. In France, sunflower seed production will benefit from the decline in maize production. The expected planting area for sunflowers in 2023 is 868K ha, up 0.8% YoY. There would be a 24.2% increase over the long-term average. In Hungary, the area of sunflower planting planned by farmers in 2023 is 714K ha larger, whereas maize is indicated to be sown less than in previous years. The rise of sunflowers compared to corn is due to market processes and the lower-than-average corn yield due to the drought in 2022.

Sunflower oil imported into India in May is expected to rise by 28% MoM to 319K MT. Sunflower oil has displaced palm oil in many parts of the country due to its competitive price. In Kazakhstan, sunflower seed was impacted by the introduction of a 20% customs duty, or USD 107.32/MT, implemented on February 4, 2023. In Russia, the export duty of sunflower oil from Russia will be zero in June, down from USD 13.85/MT in May, according to the Russian Ministry of Agriculture. On the other hand, starting on June 1, the Turkish government is anticipated to raise import taxes on sunflower seeds and sunflower oil from the existing zero rates to 27% and 36%, respectively. Turkey was one of the main consumers of Ukrainian imports. Therefore, the increased tariff would influence the market for sunflower oil in Ukraine. Additionally, as part of the "Effective Use of Agricultural Lands Project," 19,660 kg of oil sunflower seeds were distributed to farmers in Yozgat, Turkey, with grant funding. Lastly, the projection for sunflower seed production in South Africa for the 2022/23 season is 797,610MT, down 6% YoY. The annual decline in the sunflower seed production forecast mirrors the reduced planted area and yields in some areas.