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2021 ushers in higher sunflower prices

2021 ushers in higher sunflower prices

Sunflower

Similar to other commodity markets, sunflower is enjoying a great start to the New Year with rising prices and that’s putting a smile on the faces of producers.

Commenting in the Jan. 4 National Sunflower Association newsletter, John Sandbakken, NSA executive director, noted that tight beginning seed stocks and strong oil demand has crush plants looking for seed supplies.

“Nearby prices were up 5-10 cents at the crush plants this week,” he said. “New crop prices followed CBoT (Chicago Board of Trade) trade action and rallied to new highs for this market year.

“North Dakota crush plants have added 65-70 cents for new crop NuSun and high-oleic contracts in the past two weeks. New crop NuSun and high-oleic increased 10 cents in the High Plains,” he added.

Sunflower prices from Monday, Jan. 4, to Tuesday, Jan. 5, saw significant price jumps. Looking at regional prices at the crush plants, as of Jan. 5, NuSun sunflower was listed at $19.80 per hundredweight at Cargill in West Fargo, N.D., for delivery in January. The day before the price was $19.30. That’s an increase of 50 cents over 24 hours. At ADM in Enderlin, N.D., the price was unchanged from Monday to Tuesday at $19 for delivery in January.

It was a similar situation for NuSun February delivery prices with West Fargo posting prices of $19.95 on Tuesday compared to $19.45 the day before – another 50 cent increase. At Enderlin the price remained unchanged for both days at $19.35.

Sandbakken also noted that 2021 new crop NuSun sunflower prices at West Fargo were listed at $20.10 cash and $19.80 with an Act of God (AOG) clause. NuSun new crop prices at Enderlin were listed at $19.85 cash and $19.35 with an AOG clause.

Looking at high-oleic sunflower prices, on Jan. 5, the price for delivery in January at West Fargo was posted at FH $19.55/LH $19.60, also an increase of 50 cents from just the day prior. At Enderlin, high-oleic prices were unchanged $19, but they were still higher than the week before. February delivery prices were posted at $19.95 at West Fargo, a jump of 55 cents from the day before. At Enderlin, the price for delivery in February was $19.35.

Also, new crop 2021 high oleic prices saw similar increases at Cargill in West Fargo with the price on Jan. 5 being posted at $20.30 cash and $20 with an AOG. Again, those prices were 50 cents higher than the previous day. At ADM in Enderlin the new crop high-oleic price was posted at $20.10 cash and $19.60 with an AOG. That represents an increase of 20 cents compared to the day before. Elsewhere in North Dakota, Pingree was offering $19.50, while Hebron was offering $18.80 for new crop high-oleic sunflower.

Another item for sunflower producers to consider is the fact that sunflower is the only oilseed that pays premiums for oil content above 40 percent. Sandbakken noted that crush plants offer oil premiums on oil content above 40 percent at a rate of 2 percent price premium for each 1 percent of oil above 40 percent. Doing the math, this pushes a contract with 45 percent oil content gross return 10 percent higher per hundredweight. For example, the AOG $19.15 contract increases to $21.05 and the cash $19.90 contract moves up to $21.90.

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