|
 |
Sunflower Highlights - Feb. 21, 2012
|
Markets
In the recent edition of Oil World, world vegetable oil prices are expected to strengthen in the next few months. Crop losses in South America and smaller than expected world production of vegetable oils this marketing year will result in a tighter supply situation. This bodes well for a firming up in sunflower seed prices in the near to medium term. Sunflower markets are following the action on the CBoT. Another market stabilizer occurred as Greece won a second bailout after EU finance ministers awarded 130 billion Euros ($173 billion) in aid. South American weather outlooks into early March are starting to take a backseat as crop conditions have stabilized and are seasonally heading towards maturity with harvest ahead. Oilseed production in Paraguay and southern Brazil remains a concern as dry conditions have lingered into late February. USDA's annual Outlook Conference is this week and traders will focus on the first non-surveyed USDA estimates of acreage for major crops over the next decade. There are ample private-trade estimates that have already been released for 2012, and any significant departures from these in USDA's 2012 acreage allocations will be market movers. The dry soil conditions in the Northern Plains will come into play as the market begins looking at planting prospects for this spring.
|
International Sunflower Conference in Argentina
The 18th International Sunflower Conference will be held in Mar del Plata, Argentina Feb. 27 -Mar. 1. The program will cover the spectrum of sunflower topics from genes and genomics through to field agronomy and crop protection. Speakers from around the world will address those in attendance. Familiar names on the schedule include: Drs. Tom Guyla, Brent Hulke and Jarrad Prasifka, USDA-ARS of Fargo; Jim Gerdes, Mycogen Seed breeder; Richard Zollinger and Will Bleier, North Dakota State Univ., Fargo, ND talking about weed control and blackbird management respectively; and Venki Pegadaraju of BioDiagnostics, Inc. speaking on the SNP Assisted Breeding for Sunflower Improvement. NSA will also have staff in attendance for the four-day conference.
|
Sunflower Conditions in Argentina
The International Sunflower Conference will begin later this month in Argentina. To get a better idea of this year's growing season, Pablo Paoloni of the ISC organizing committee provided a synopsis. Approximately 4.5 million acres of sunflower were planted in Argentina this season. This is about 5% more in area than the previous year. The biggest factor this year was lack of moisture with an estimated 10 to 15% or more reduction in total yield due to drought. In the southern and western portions of Argentina the planting date was delayed because of lack of rain in October. The anticipated rain came in November and 70% of the area was planted in late November or early December. These late plantings actually benefited the sunflower because of extreme heat during a period between Dec. 20 and Jan. 15, with temperatures 10-20% above the average temperatures. No rain was registered in this period. The later planted crop was flowering during this time, and good yields are expected. As of this week, the sunflower in northern Argentina is 60-80% harvested depending on the area with yields between 1,075 to 1,600 lbs. per acre, which is better than the previous year. In the west, (Cordoba) harvest is just getting underway with yields lower than normal (900 lbs). At La Pampa, estimates are for higher than normal yields, between 1,800 to 2,700 lbs. per acre. West and south west of Buenos Aires farmers are expecting lower than normal yields due to the extreme drought.
|
Price Discovery in Process for Crop Insurance
USDA Risk Management Agency (RMA) is in the process of determining the spring crop insurance price elections for sunflowers. Current values per cwt. are $27.90 for oil sunflowers and $35.40 for confection sunflowers. The price discovery period will continue through February 29. The final price elections will be announced shortly thereafter. To track price elections on a daily basis use this link: Crop Insurance Tracker.
|
Dry Conditions Continue
According to the U.S. Drought Monitor, in the Northern Plains states, only a few tenths of an inch of precipitation last week meant drought conditions either persisted or intensified. Conditions classified as D0 or abnormally dry expanded westward through portions of southern and central South Dakota while D2 or severe drought conditions were extended slightly into eastern parts of the state. Many of the D2 areas recorded less than half of normal precipitation during the last 60 days. Since August 1, Sioux Falls, SD received only 3.6 inches of precipitation, the third lowest for the period in roughly 100 years of records. Small amounts of measurable snow fell in portions of North and South Dakota earlier this week. Whether or not the new precipitation will change the drought outlook will be analyzed in next week's report.
|
Canadian Firm Buys U.S. Companies
Canadian special crop processor Legumex Walker has bought its way into the U.S. dry bean and dehulled sunflower seed markets. The Winnipeg-based company, formed last summer with the merger of Roy Legumex and Walker Seeds, has bought St. Hilaire Seed Co. and the sunflower seed processing assets of Anderson Seed Co. for $12 million and $4.8 million respectively. The sunflower seed processing assets sold were previously owned by Anderson Seed Company in Mentor, Minnesota, and two North Dakota receiving stations. The sunflower business will be run under a new division called Legumex Walker Sunflower. The company's Redfield, South Dakota operation was not sold to Legumex Walker.
|
Update on NSA's SNP Project
The SNP Consortium committee recently met in Fargo during the NSA Research Forum. Also, those who attended the Forum general sessions were given an update on the progress of the project. According to Quentin Schultz, of BioDiagnostics Inc., 2,526 SNP markers have been assigned map location on the sunflower genetic map thus far. Of specific interest is the resistant rust gene that is now mapped and this marker is now available to Consortium members for use in their breeding efforts. For more information on the SNP project and the Consortium, contact Quentin Schultz at BioDiagnostics, Inc. at 715-426-0246. Periodic updates will be given in this newsletter over the course of the next several months as the project progresses.
|
|
|
