Dakota Farmer

Sunflower Extra: USDA crop acreage report shows a 26% decrease in planted area from 2020.

John Sandbakken, Executive director

October 5, 2021

3 Min Read
Field of sunflowers
ACERAGE REPORTS: While U.S. planted acres have decreased, global sunflower production has increased. Atlantide Phototravel/Getty Images

According to the September USDA Farm Service Agency crop acreage report, area planted to sunflower in 2021 decreased 26% from 2020 and totals 1.27 million acres.

Planted area of oil-type varieties, at 1.16 million acres, is down 23% from 2020. Planted acreage of non-oil varieties, estimated at 109,260 acres, is down 52% from last year. These figures represent a decrease from the June acreage report, where USDA estimated total planted area at 1.38 million acres, with oil-type varieties at 1.25 million acres and non-oil varieties at 130,000 acres.

Severe to exceptional drought conditions were prevalent throughout the key growing areas of the Dakotas and Minnesota this growing season. It is unknown how this might have impacted sunflower production and will not be determined until farmers harvest their crop. Initial estimates of total oil and non-oil sunflower production was in a range of 2.1 billion to 2.3 billion pounds, which is about 25% lower than last year’s crop. USDA releases its final 2021 acreage and production estimates in January.

Global production increase

Global sunflower production in 2021-22 is projected at 57 million metric tons (MMT), this figure is up about 14% from last year. The increase is mainly due to a larger crop in Russia, Ukraine and the European Union. Argentine production is expected to be equal to last year.

Global crush is projected to increase based on the higher production figure. Sunflower oil trade is forecast to increase with ending oil stocks increasing slightly from 2020-21 levels. Ending seed stocks are expected to stay relatively low, representing only 4.9% of annual usage.

With harvest in progress in Northern Hemisphere, the market is beginning to look at 2022 production prospects in the Southern Hemisphere. Farmers in both Brazil and Argentina are talking about a major increase in 2022 soybean acres. If realized this could put pressure on U.S. new-crop oilseed prices this fall into winter.

U.S. producers are also looking at crop options for next year. Crush plants were out early offering 2022 new-crop cash and Act of God contracts. NuSun cash is $26.80 to $27, and AOG is $26.30 to $26.50. High-oleics are $27.20 to $27.25 cash, and $26.70 to $26.75 AOG.

Something else to consider is the oil premiums that crush plants pay on sunflowers. Sunflower is the only oilseed that pays premiums for oil content above 40%. Considering oil premiums that are offered at the crush plants on oil content above 40% at a rate of 2% price premium for each 1% of oil above 40%. This pushes a contract with 45% oil content gross return 10% higher per cwt. The AOG $26.30 contract increases to $29, and the cash $27.25 contract moves up to $30.

Nearby prices at the crush plants are trading at $29 to $31. Depending on the size of the 2021 crop, seed prices could drift lower, as harvest deliveries arrive at plants and farmers pick up the selling pace in the next couple of months. After the initial harvest delivery period, prices will follow demand news. You can find market news and prices at sunflowernsa.com

Sandbakken is executive director of the National Sunflower Association.

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Sunflowers

About the Author(s)

John Sandbakken

Executive director, National Sunflower Association

John Sandbakken of Mandan, N.D., has been the executive director of the National Sunflower Association since 2012. Before his current post, he was NSA's international marketing director for 16 years.

The National Sunflower Association is a combination of United States sunflower growers and industry members. NSA is a nonprofit organization working in the areas of market development, education, production and utilization research.

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