The Wholesale Price of Sunflower Seeds in Argentina Decreased by 18.19% YoY Due to Oversupply and Competition from Russia

Argentina’s sunflower seeds prices in the Rosario wholesale market decreased by 18.19% YoY and 9.1% MoM to USD 0.3 per kilogram (kg) in Mar-24. The downward trend started on Jan-24 after a peak price of USD 0.56/kg on Dec-23. This decline can be attributed to oversupply in the local market and strong export competition from Russia. However, in Mar-23, the BAGE decreased its projections for Argentina's 2023/24 sunflower by 200 thousand mt due to adverse weather conditions. Price is expected to recover soon based on the current production estimate.
The wholesale price of sunflower seeds in Rosario, Argentina, decreased by 18.19% year-on-year (YoY) to USD 0.3 per kilogram (kg) on Mar-24. Furthermore, the price has also experienced a month-on-month (MoM) decrease, dropping by 9.1% from USD 0.33/kg on Feb-24. The downward trend started in Jan-24 after reaching a peak in Dec-23 when the price stood at USD 0.56/kg. This price decrease is due to the oversupply and strong competition from Russia. According to the Industrial Chamber of Grain and Oilseed (ICGO), Argentina's sunflower seed processing surged to its highest level in the last five months, totaling 218 thousand metric tons (mt) in Jan-24. In addition, Russia's 2023/24 MY harvest is expected to set a record, reaching 17.5 mmt. However, in Mar-24, the Buenos Aires Grains Exchange (BAGE) revised downwards its projections for Argentina's 2023/24 sunflower crops due to adverse weather conditions, including a heat wave on Feb-24, followed by heavy rains on Mar-24. The updated output projection is 3.6 million mt (mmt), reflecting a reduction of 200 thousand mt from the previous estimate and 1 mmt from the 2022/23 harvest. Price may recover soon based on the current production estimate.