CANADA MONTHLY OUTLOOK Sunflower Seed For 2017-18

Production is estimated to be relatively unchanged at 52 kt as lower harvested area is offset by higher yields. However, compared to 2016-17, supply is expected to increase by 11% to 117 kt due to higher carry-in stocks. Exports are forecast to be similar the previous year and carry-out stocks are forecast to rise. The US is expected to remain Canada’s main export market for sunflower seed. The average price is forecast to be higher than 2016-17 due to lower North American supplies. US sunflower seed production for 2017-18 is forecast by the USDA at just over 0.8 Mt, down sharply from 2016-17, and largely due to lower roduction in North Dakota. Production of oil type varieties is estimated to have fallen to 0.7 Mt and the production of confectionery type varieties is estimated to have decreased to 0.1 Mt. Total supply in the US supply is expected to decrease by nearly 20% to 1.2 Mt. Domestic use is estimated to decrease and exports are expected to fall marginally. As a result, US sunflower seed carry-out stocks are expected to fall sharply and be supportive for North American prices. The world supply of sunflower seed for 2017-18 is estimated by the USDA at 50.8 Mt. This is marginally lower than last year, due to lower production in Ukraine. World domestic use is expected to decrease and world exports are forecast to fall sharply. World carry-out stocks are expected to decrease to 2.2 Mt, well below the five-year average.