RED RIVER COMMODITIES
NEWS LETTER 

SUNFLOWER WEEK IN REVIEW

DECEMBER 20, 2002

USDA ADJUSTS LOAN RATE 

After a great deal of effort on the part of Congress and the National Sunflower Association, USDA announced "oil-type and other-type sunflower seed will have a single county loan rate with the loan repayment rate based on the oil-type sunflower seed price." This language was part of the Farm Security and Rural Investment Act of 2002 conference report but USDA chose to ignore that language. The national average loan rate for all sunflower will be $.096 per pound. USDA will continue to differentiate loan levels for minor oilseeds for the 2003 season. 'In addition to sunflower at S.0960, flax will be $.0720, canola $.0978, rapeseed $.0976, safflower $.1292 and mustard $.1019. The NSA issued a press statement thanking key Senators (Conrad, ND and Roberts, KS) and other Congressional offices for their persistence and hard work on this issue. 

SPAIN DOMINATES CONFECTION MARKET 

US exports of confection (in-shell) sunflower increased by 9% in the 2001/02 marketing year from. 46,996 MT to 51,162 MT. Spain dominates the US confection sunflower seed export market taking nearly 50% of total US exports at 24,541. MT. Spaniards have traditionally been a large consumer of roasted and salted confection sunflower seeds and are very particular about the quality. They typically buy large confection sunflower seeds. NSA has been. working with Spanish roasters for over 10 years conducting consumer promotion using magazine and television, advertising, and point-of-sale promotions in various retail locations to create sales of US confection sunflower seeds. 

ARGENTINE SUNFLOWER PLANTING 

The Argentine sunflower planting window is about to close, Acreage not planted at this time is likely to switch to soybean which can be planted later.  Old World in its December 13 issue is estimating that abandonment of sunflower planted acreage could reach as high as 6.6 percent due to adverse weather in November and early December. The German based publication is estimating an Argentine crop size of 3.85 million metric ton, a slight reduction from earlier estimates but still larger than last year's 3.65 MMT.

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