Dakota Farmer

Sunflower prices: Which way now?

Reduction in planted acres is already factored into the market.

August 23, 2016

2 Min Read

Now that the USDA estimate of an 11% reduction in planted acres in the U.S. is factored into the market, buyers will anxiously watch crop production prospects before making longer-term purchases.

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According to USDA, area planted to sunflower in 2016 decreased 11% from 2015 and totals 1.65 million acres. Harvested area for all types is expected to decrease 12% from last year to 1.58 million acres. Planted area of oil-type varieties, at 1.43 million acres, is down 8% from 2015. Harvested area for oil types is expected to decrease 8% from last year to 1.38 million acres. Planted acreage of non-oil varieties, estimated at 216,400 acres, is down 30% from last year. Harvested area for non-oil varieties is expected to decrease 31% from last year to 201,900 acres.

In the main sunflower production region, most states had a decrease in acres. North Dakota and Colorado recorded a gain in total acreage from last year. Assuming a trend yield, USDA pegged U.S. sunflower production to decrease 16% in 2016-17 to 2.45 billion pounds as yields retreat from last year’s record high.

In October, USDA will provide an updated estimate for oil and non-oil sunflower production. This report and demand news will set the tone for new-crop sunflower price direction in the near term.

To keep up with market news and prices, go to sunflowernsa.com.

Sunflower DNA decoded
French scientists have completed the sunflower reference genome sequence. For the first time, the sunflower's DNA has been completely decoded. In other words, all of its genetic material (or its genome) has been analyzed, assembled and mapped. The mapping of the sunflower genome opens up new opportunities for identifying genes of agronomic interest, or those with prospects in industry or food production. This information will enhance the effectiveness of sunflower breeding programs and will provide farmers with new varieties that are better adapted to production methods, food production and industrial uses, while also responding to economic changes.

AAK acquires CalOils
AAK has acquired the California Oils Corp., also known as CalOils, from Mitsubishi Corp., Tokyo. CalOils’ product line includes a variety of oils, including high-oleic and mid-oleic sunflower oil. With the acquisition of CalOil’s facility in Richmond, AAK now owns four production sites in the United States. The other sites are located in Edison and Port Newark, N.J., and in Louisville, Ky. AAK is headquartered in Sweden and has 20 different production facilities in more than 25 countries.

Sandbakken is executive director of the National Sunflower Association.

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