Market Report brought to you by the National Sunflower Association (www.sunflowernsa.com).
USDA estimated producers will plant 1.45 million acres to sunflowers in 2017 representing a decrease of 9 percent from 2016. Area intended for oil type varieties, at 1.16 million acres, is down 18 percent from 2016. Area intended for non-oil varieties, was estimated at 295,000, this is up 65 percent from last year. The estimate for oil type varieties was lower than industry expectations and the non-oil figure was higher than industry guesses. Planted area in North Dakota, last year’s leading sunflower producing state, is expected to decline 158,000 acres from 2016. Producers in South Dakota intend to plant 585,000 acres in 2017, an increase of 27,000 acres from last year. This report gives planting intentions, not actual planted acreage. Depending on spring weather and market conditions, producers can still change their final crop mix. If this expected reduction in oil type sunflower does happen it might start to create some unexpected opportunities as we look ahead. Historically when USDA’s March intentions report showed acreage below industry expectations, new crop prices firmed up after that and in most cases prices have moved higher as the industry looked to secure seed supplies. Depending on how final planted acres turn out this year it could happen again and diversifying market risk with some sunflower acres could be a good option in 2017.
Categorized in: sunflowers
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