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Nearby sunflower prices show strength during harvest

Nearby sunflower prices show strength during harvest

Sunflower

It was a bone-chilling end to the year 2021, and although sunflower prices did slip slightly, it was not totally unexpected as the end of the year and holiday season is typically a slower period for the market.

Thus there wasn’t much in store for new news to spark much interest. Even so, sunflower prices remained in the low $30s range as the new year began.

“Nearby prices were unchanged to up 10 cents with new crop unchanged to up 40 cents at the crush plants this week,” commented John Sandbakken, National Sunflower Association executive director, in the Jan. 3 NSA newsletter, adding that 2022 new crop sunflower with cash and Act of God (AOG) contracts were available at the crush plants.

At the regional crush plants, as of Jan. 3, NuSun sunflower was listed at $32.05 per hundredweight at the ADM plant in Enderlin, N.D., for delivery in both January and February. At the Cargill plant in West Fargo, N.D., the January/February delivery price for NuSun sunflower was $31.55.

High-oleic sunflower prices on Jan. 3 at Cargill in West Fargo were $32.45 for January delivery and $32.35 for delivery in February. At ADM in Enderlin, for January and February delivery of high-oleic sunflower, the price offering was $32.25 per hundredweight.

Sandbakken also noted that 2022 new crop prices at the crush plants continued to stay in the high $20 range. At ADM Enderlin, as of Jan. 3, the price was $27.05 cash and $26.55 with an AOG for 2022 new crop NuSun sunflower, while at Cargill West Fargo the price was $27 cash and $26.50 with an AOG.

High-oleic 2022 new crop prices were $27.50 cash and $27 with an AOG at West Fargo, and $27.30 cash and $26.80 with an AOG at Enderlin.

“When looking at the new crop price you also need to consider the oil premiums that crush plants pay on sunflower,” Sandbakken noted, adding that sunflower is the only oilseed that pays premiums for oil content above 40 percent.

The crush plants are offering a 2 percent price premium for each 1 percent of oil above 40 percent. For example, a contract with 45 percent oil content would push the gross return 10 percent higher per hundredweight. The AOG $26.40 contract increases to $29.05, and the cash $27.50 contract moves up to $30.25, he explained.

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