MARKET DEVELOPMENT
Production of Sunflower Up, As Are Oil, Kernel Exports
Production of Sunflower Up, As Are Oil, Kernel Exports
30/10/2015 (Farm and Ranch Guide) - Exports of U.S. sunflower oil and sunflower kernels are up and, with sunflower harvest under way, that’s good news for producers who are expecting to see increased yields this year.
“Harvest of the U.S. sunflower crop is picking up steam. A hard freeze is expected in the main sunflower production area later this week and this should aid in harvest progress,” commented John Sandbakken, executive director of the National Sunflower Association, in NSA’s weekly newsletter on Oct. 19.
“Initial yield reports are comparable to the USDA projected yields and quality has been excellent,” he noted. “Most of the U.S. sunflower crop is rated in the good to excellent categories so yields and quality are expected to be above average.”
In fact, in its report released the week before, the U.S. Department of agriculture estimated U.S. sunflower production at 2.91 billion pounds for this year. At a record high 1,629 pounds per acre, the October yield forecast is 160 pounds higher than last year’s yield.
Producers in North and South Dakota, Minnesota and Colorado expect average yields will jump from 110 to 250 pounds per acre versus last year.
“The increased production will help meet the growing demand for sunflower oil, confection seeds and kernel,” Sandbakken said.
Looking at sunflower oil exports, sales to Japan have nearly doubled last year’s total for the time period from October 2014 to August 2015. During that time Japan imported 4,342 metric tons (MT) of sunflower oil versus 2,575 MT during the same time period in 2013/14.
Even so, Canada remains the top importer of sunflower oil, importing 17,562 MT during the October 2014 to August 2015 timeframe.
However, overall U.S. sunflower oil exports were lower for October 2014 to August 2015 from the same time period the year prior. So far, 27,049 metric tons of sunflower oil have been exported, compared to 34,986 MT during October 2013-August 2014.
Sandbakken pointed out that exports of U.S. sunflower kernel are up from last year, with exports to Mexico and Korea nearly doubling. During the same time period, Mexico imported 2,113 metric tons MT of sunflower kernel, compared to 1,183 MT the year before. Korea imported 2,307 MT from October 2014 to August 2015 compared to 1,208 MT the prior year.
“Overall, sunflower kernel exports are up from 9,498 MT a year ago to 11,096 MT through August of the current marketing year,” Sandbakken noted.
Looking at in-shell sunflower sales, Spain remains the top importer and has imported 19,027 MT from October 2014 to August 2015. However, in-shell exports at 52,398 MT as of the end of August 2015, were down slightly from a year ago when exports totaled 64,049 MT.
“Traders are thinking that El Nino weather could reduce global palm oil production. This, and potential for higher Asian demand, is helping to support world vegetable oil prices,” said Sandbakken, adding that soyoil contracts on the Chicago Board of Trade are expected to firm up on these thoughts.
“NuSun and high oleic prices are following the oil demand trend and are very competitive,” he said.
NuSun prices were at $16.45 per hundredweight at both the Fargo and Enderlin, N.D., plants for October and November delivery.
A check of harvest progress as of Oct. 19 showed that Minnesota producers had harvested 78 percent of their sunflower crop which was two weeks ahead of average and three weeks ahead of last year’s harvest pace. North and South Dakota producers were also well ahead of last year, but closer to average at 31 percent and 34 percent harvested, respectively.
Crop condition reports indicated 72 percent of the North Dakota sunflower crop was rated in good (65) to excellent (7) condition. In South Dakota, 78 percent of the sunflower crop was reported in good to excellent condition.
“Harvest of the U.S. sunflower crop is picking up steam. A hard freeze is expected in the main sunflower production area later this week and this should aid in harvest progress,” commented John Sandbakken, executive director of the National Sunflower Association, in NSA’s weekly newsletter on Oct. 19.
“Initial yield reports are comparable to the USDA projected yields and quality has been excellent,” he noted. “Most of the U.S. sunflower crop is rated in the good to excellent categories so yields and quality are expected to be above average.”
In fact, in its report released the week before, the U.S. Department of agriculture estimated U.S. sunflower production at 2.91 billion pounds for this year. At a record high 1,629 pounds per acre, the October yield forecast is 160 pounds higher than last year’s yield.
Producers in North and South Dakota, Minnesota and Colorado expect average yields will jump from 110 to 250 pounds per acre versus last year.
“The increased production will help meet the growing demand for sunflower oil, confection seeds and kernel,” Sandbakken said.
Looking at sunflower oil exports, sales to Japan have nearly doubled last year’s total for the time period from October 2014 to August 2015. During that time Japan imported 4,342 metric tons (MT) of sunflower oil versus 2,575 MT during the same time period in 2013/14.
Even so, Canada remains the top importer of sunflower oil, importing 17,562 MT during the October 2014 to August 2015 timeframe.
However, overall U.S. sunflower oil exports were lower for October 2014 to August 2015 from the same time period the year prior. So far, 27,049 metric tons of sunflower oil have been exported, compared to 34,986 MT during October 2013-August 2014.
Sandbakken pointed out that exports of U.S. sunflower kernel are up from last year, with exports to Mexico and Korea nearly doubling. During the same time period, Mexico imported 2,113 metric tons MT of sunflower kernel, compared to 1,183 MT the year before. Korea imported 2,307 MT from October 2014 to August 2015 compared to 1,208 MT the prior year.
“Overall, sunflower kernel exports are up from 9,498 MT a year ago to 11,096 MT through August of the current marketing year,” Sandbakken noted.
Looking at in-shell sunflower sales, Spain remains the top importer and has imported 19,027 MT from October 2014 to August 2015. However, in-shell exports at 52,398 MT as of the end of August 2015, were down slightly from a year ago when exports totaled 64,049 MT.
“Traders are thinking that El Nino weather could reduce global palm oil production. This, and potential for higher Asian demand, is helping to support world vegetable oil prices,” said Sandbakken, adding that soyoil contracts on the Chicago Board of Trade are expected to firm up on these thoughts.
“NuSun and high oleic prices are following the oil demand trend and are very competitive,” he said.
NuSun prices were at $16.45 per hundredweight at both the Fargo and Enderlin, N.D., plants for October and November delivery.
A check of harvest progress as of Oct. 19 showed that Minnesota producers had harvested 78 percent of their sunflower crop which was two weeks ahead of average and three weeks ahead of last year’s harvest pace. North and South Dakota producers were also well ahead of last year, but closer to average at 31 percent and 34 percent harvested, respectively.
Crop condition reports indicated 72 percent of the North Dakota sunflower crop was rated in good (65) to excellent (7) condition. In South Dakota, 78 percent of the sunflower crop was reported in good to excellent condition.