Argentina expands sunflowerseed production and crushing amid high global sunflower oil prices

Argentina’s sunflowerseed production in the MY 2026/27 could reach a record 7.4 mln tons, supported by expanding planted area, high global sunflower oil prices and growing investment in processing capacity. The US Department of Agriculture’s Foreign Agricultural Service (USDA FAS) raised its previous production forecast by 8%, while planted area is estimated at 3.3 mln ha, up 200 thsd ha from the previous season.

Production growth is being driven by strong sunflowerseed profitability and its competitive advantages over other crops. In particular, sunflower generally requires less fertilizer than corn, making it more attractive amid high production costs. Acreage expansion is particularly strong in the northern provinces of Chaco and Formosa. As of early October, approximately 31% of the planned area had been planted, with progress around 10% ahead of the five-year average. Favorable moisture conditions associated with the developing El Niño weather pattern could provide additional support to yields.

Meanwhile, Argentina is expanding domestic sunflowerseed crushing. USDA FAS raised its MY 2026/27 crushing forecast by 7% to 6 mln tons, supported by increased raw material availability, high sunflower oil prices and favorable processing margins. During March–August 2026, monthly crushing volumes averaged around 540 thsd tons, reaching levels last seen approximately 20 years ago.

Rising production is encouraging investment in Argentina’s oilseed processing industry. Plans include a new $400 mln sunflowerseed crushing facility in Bahía Blanca, expected to become operational by the 2028/29 season, as well as the reopening of a processing plant near Rosario with an investment of approximately $100 mln. Some soybean crushing facilities are also upgrading their equipment to process other oilseeds. Against this backdrop, the forecast for sunflower oil production in the MY 2026/27 has been raised to 2.53 mln tons, while exports are projected at 2 mln tons.

Argentina is also expanding sunflowerseed exports, which could reach 1.1 mln tons in the MY 2026/27. Demand is primarily coming from Eastern European countries, particularly Bulgaria and Romania, which are seeking alternative suppliers amid disruptions to Ukrainian shipments. However, analysts expect competition in the global market could intensify if supplies from other origins recover, potentially reducing Argentine sunflowerseed exports to around 800 thsd tons. Despite these risks, strong sunflower oil demand and expanding crushing capacity are expected to support further growth in the sector.

Tags: sunflower oil, oilseeds, sunseed, Argentina