Sunflower Acres Decrease as Prices Normalize, but Demand Remains Strong

Sunflower prices in North America have returned to normal levels this year, following a period of exceptionally high prices in 2022. While sunflower crops were fetching around $40 per hundredweight (cwt.) in North Dakota last year, the current prices stand at $19.50 per cwt. for old crop and approximately $21 for new crop. As a result, sunflower acres have declined in both the United States and Canada.

As a result of the lower prices, sunflower acres have decreased in both the United States and Canada. In Manitoba, the main sunflower-producing province in Canada, farmers seeded approximately 73,000 acres in 2022, based on crop insurance data, although Manitoba Agriculture estimated the crop at 83,000 acres. Yields were decent but not exceptional, averaging 2,057 pounds per acre.

In 2022, American sunflower production increased by 30%, with North Dakota farmers achieving record yields. This spring, North Dakota contributed to a total U.S. output of 2.81 billion pounds, 48% increase from 2021. North Dakota alone accounted for nearly half of the American output, producing 1.34 billion pounds, up 71% from 2021.

The 2022 surge in US sunflower production is attributed to the conflict in Ukraine, which caused prices to skyrocket. However, current lower prices and remaining stocks from the previous year are expected to decline sunflower acres in the US, with a forecast of 1.36 million acres compared to 1.69 million in 2022.

New sunflower crop prices remain decent, but global buyers and market participants have adjusted due to the war, reducing demand. Snack food manufacturers continue to purchase sunflower oil for chips, salad dressings, and popcorn. Canada is an important market for U.S. sunflower oil, with imports doubling from 20,000 tonnes in 2018/2019 to 40,500 tonnes in 2021-22.

The North American sunflower market stabilized after a 2022 price surge, reducing sunflower acres. Although prices have returned to normal levels, food processors in Mexico, the US, and Canada still demand sunflower oil, suggesting a potential surplus in sunflower seeds in 2023.