W50 Sunflower Update: EU Anticipates 7% YoY Growth in 2023 Sunflower Seed Production, Kazakhstan Gears Up with 370,000 mt Reserves for 2024

USDA Maintains Sunflower Production Estimate for 2023/24 MY

The United States Department of Agriculture (USDA) revised the global oilseed production estimate for the 2023/24 marketing year (MY) from 661.46 million metric tons (mmt) in its Nov-23 report to 660.99 mmt in the Dec-23 report. The sunflower production estimate remains unchanged at 56.8 mmt. Similarly, the global oilseed export estimate was adjusted, with the sunflower export figure remaining steady at 3.09 mmt.

European Union Witnesses 7% YoY Increase in Sunflower Seed Production for 2023

In 2023, the European Commission (EC) estimates that nearly 10 mmt of sunflower seeds were produced in the European Union (EU), marking a 7% year-on-year (YoY) increase. The yield per hectare saw a significant improvement, rising by almost 10% YoY compared to the previous year, attributed to moderate temperatures and favorable rainfall. Romania remains the primary sunflower-growing country at 2.1 mmt, though yields were 12% YoY lower. In Germany, despite a slight reduction in the 2023 harvest compared to the previous year, sunflower cultivation is viewed as a regional alternative to diversify crop rotations and mitigate risks.

Kazakhstan Forecasts 370,000 mt of Sunflower Carryover Stocks by October 2024

The Grain Union of Kazakhstan projects the ending reserves of sunflower in the country to be up to 370 thousand metric tons (mt) by October 1, 2024. This represents 42% of the anticipated gross sunflower harvest in 2023, considering production, imports, domestic consumption, and exports. The increase in carryover stocks is attributed to the period of active export regulation, with reserves exceeding 90 thousand mt, indicating challenges for grain producers to sell their products timely.

Bulgaria Mulls 50%+ Quota for Ukrainian Sunflower Imports

The Ministry of Agriculture's proposed draft in Bulgaria outlines import quotas for various products from Ukraine, restricting them to half of the total imports of the last reported year, except for sunflower. Sunflower imports can exceed 50% of the previous year's imports, considering factors like stock base, domestic consumption, and processor data. Bulgarian companies are expected to import over 1 mmt of grain and oil from Ukraine, including unrefined and refined sunflower oil. The quotas are anticipated to be valid until the end of 2024, covering the processors' needs, with potential compensation from imports from Romania or Moldova in case of higher demand due to weaker Bulgarian production.

Egypt Assures Sufficient Domestic Vegetable Oil Reserves for Six Months

Domestic reserves of vegetable oil in Egypt are deemed sufficient to meet demand for the next six months. Notably, approximately half of the country's edible oil consumption is derived from sunflower oil, a daily staple for many households. Due to low domestic sunflower production, private processors in Egypt depend on imported raw materials to meet demand.