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Argentina is projected to achieve a record sunflowerseed production of 7 million tonnes in the 2025/26 marketing year, according to a recent report by the US Department of Agriculture (USDA). This updated forecast, an increase of 50,000 tonnes from prior estimates, is attributed to exceptional yields and an expansion in the country's planted area.
The USDA's 'Argentina - Oilseeds and Products Update' dated 6 July, indicated that the nationwide average yield for sunflowerseed in 2025/26 is estimated at a record 2.3 tonnes per hectare. The expanded cultivation area primarily includes additional acreage in northern growing regions, notably the Chaco and Formosa provinces.
Sunflowerseed crushing operations are also expected to see a slight increase, forecast at 5.4 million tonnes for 2025/26, marking a rise of 100,000 tonnes since the USDA's annual production report. The USDA highlighted that over 75% of Argentina's sunflower production is anticipated to be processed domestically and subsequently exported as value-added products. Furthermore, exports of whole sunflowerseed are projected to reach unprecedented levels this year, driven by strong demand from the European Union, which faces difficulties in sourcing from its traditional supplier, Ukraine.
A report from the Foreign Agricultural Service (FAS) noted that while many Argentine crushing facilities possess the capability to process various oilseeds, including sunflowerseed, most operators have historically been hesitant to shift from soybeans. This reluctance stemmed from the additional costs and complex processes involved in crushing different oilseeds within the same plant. However, the USDA observed a changing dynamic, as 'sunflowerseed crush margins remain high', with these favorable margins expected to persist into the upcoming marketing year.
The forecast for 2025/26 sunflowerseed exports has been revised upwards to 1.1 million tonnes, a substantial increase compared to the previous year. This surge is primarily fueled by demand from Eastern European markets, including Bulgaria and Romania, which have encountered heightened costs and supply constraints when procuring from Ukraine.
Looking ahead to the 2026/27 marketing year, the USDA has maintained its earlier projections for Argentine sunflowerseed production, planted area, and yield. Production is still estimated at 6.8 million tonnes, with a planted area of 3.3 million hectares, and an average yield of 2.06 tonnes per hectare.
The USDA clarified that 'the expected expansion in area is driven primarily by sustained favourable prices. Sunflower prices have remained attractive for three consecutive years, incentivising both existing producers and new to incorporate the crop into their rotations'. Moreover, relatively weaker corn and soybean prices have enhanced sunflower's comparative profitability, particularly during critical planting decision periods. Input costs are also playing a vital role, as sunflower's lower fertiliser requirements make it an increasingly appealing alternative to corn, especially in an environment characterized by persistently high or volatile fertiliser prices.
The USDA has also maintained its prior forecast for 2026/27 sunflowerseed crushing at 5.6 million tonnes, and its export estimate for the same period remains at 900,000 tonnes, consistent with the forecast from two months prior.
Source: Oils & Fats International