W26: Sunflower Update

In W26 in the sunflower landscape, the Hungarian government has urged the European Commission to extend the ban on importing grains and oilseeds from Ukraine, particularly corn and sunflower seeds, until the end of 2023 or at least for a specific period. The reason for this suggestion is the disruption in the market caused by the Ukrainian grain supply, which creates daily problems. In Spain, the Spanish Sunflower Association reports a decrease in the planted area for sunflowers at 187 thousand hectares (ha), 11% less than the initial estimate of 210 thousand hectares. The provinces of Seville and Córdoba in Spain are most affected by this reduction. Seville shows poor stem development and plant density in sunflower cultivation, although some areas with better water retention capacity in the soil have shown improved development. On the other hand, Córdoba benefits from favorable weather conditions with moderate rainfall and temperatures, leading to a significant improvement in crop conditions. The dry weather during cereal development, combined with recent rains just before harvest, has led to low yields and poor grain quality. As a result, farmers anticipate that planting sunflowers as a rotational crop will help meet production expectations more effectively and enable them to mitigate the losses incurred in cereal production.

Bulgarian farmers are showing a preference for planting crops other than sunflowers, although the reduction in sunflower acreage in 2023 is not significant. The increase in sunflower seed stocks plays a crucial role in their decision-making. The Bulgarian crushing industry appears to favor imported sunflower seeds, mainly from Ukraine and Romania, while sales of locally grown sunflower seeds have declined. In the Kherson region of Russia, 17 settlements were flooded due to the destruction of the Kakhovskaya hydroelectric power station. As a result, sunflowers will be planted instead of corn, rice, and soybeans in that area to maintain the profitability of agricultural enterprises and labor. In the Zaporozhye region of Ukraine, the sowing of spring crops, including wheat, barley, and sunflower, has been completed, covering over 600 thousand hectares (ha) of land. Lastly, in South Africa, the sunflower seed production estimate was lowered by 5% from July to 758,610 mt, down 10% YoY. The annual decline in the sunflower seed production forecast mirrors the reduced planted area and yields in some areas.