A combination of strong demand and processors trying to entice farmers to seed more acres is propelling sunflower prices into unknown territory.
“The most I’ve ever paid for sunflowers is 35 cents per pound and we’re contracting at 36 today (May 22),” said Grant Fehr, manager of Keystone Grain Ltd. in Winkler, Man., the largest sunflower processor in Canada.
The 36 cents per lb. for confectionary sunflowers tops the 35 cents mark set in 2004, when a frost drove prices up, Fehr said.
Oilseed sunflower prices are also strong, sitting just below 30 cents per lb. (US), according to numbers from the U.S. National Sunflower Association. Last year at this time, prices were 17 to 20 cents per lb.
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“The last 10 year average (for prices) is probably 12 to 13 cents. And we’re at 30, so times are good,” said Fred Parnow, a sales associate with Seeds 2000, a seed provider in Crookston, Minnesota.
“The industry needs acres of oil sunflowers because of the demand for the oil,” Parnow said.
“So the crushers in North Dakota, ADM and Cargill, they’re upping their bids right at planting time … to encourage more acres.”
Some worried earlier this year that sunflowers would lose to canola and other crops in this spring’s battle for acres. Statistics Canada’s April 21 seeding intentions survey said sunflower area would drop to 150,000 acres in Manitoba, down 20 percent from 190,000 acres in 2007.
Manitoba producers, however, seem to have more faith in sunflowers.
“My thoughts all along were that we would see the same acres as last year,” said Mike Marion, general manager of Sabourin Seeds in St. Jean Baptiste, Man.
Fehr concured.
“I think we’re going to come back and be even to maybe down five percent,” he said.
Dry soil conditions in the United States and Canada are helping sunflowers hold their acreage.
“Things are changing daily based on the moisture,” Parnow said.
“In western North Dakota and southwest Manitoba, guys are backing away from canola, a shallow seeded crop, and putting in sunflower, which is conducive to dry conditions.”
Parnow said the downside is that even if sunflowers gain acres, yields could fall because of late seeding.
While it’s not certain high prices will encourage more acres, demand for sunflower oil should keep prices high.
“The Nu-Sun type sunflower oil, the zero trans fat thing, it all goes hand in hand.”
Fehr agreed a robust market for all oilseeds will continue to prop up sunflower prices.
“We’re going to see this (price) strength continue for the foreseeable future.”
The U.S. Department of Agriculture expects confectionary acres in North Dakota to fall to 125,000 in 2008, down 25 percent from 2007.
