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Sunflower market takes in acreage report

Sunflower

With sunflower harvest still many weeks away, the sunflower market took into consideration the latest acreage reports from the USDA’s National Agriculture Statistics Service (NASS) and the Farm Service Agency (FSA) while also continuing to watch the weather and keep an eye on crop progress.

“USDA Farm Service Agency released its initial reported acre figures last week for all crops. Oil-type sunflower planted acreage was pegged at 1.53 million acres with non-oil acres at 136,824,” commented John Sandbakken, executive director of the National Sunflower Association, writing in NSA’s weekly newsletter on Aug. 29.

Sandbakken further explained that the USDA National Agriculture Statistics Service contacted respondents in Minnesota, North Dakota, and South Dakota in July. At that time, producers reported acreage as “not yet planted” to verify planted acreage for several crops, including sunflower.

“NASS adjusted some crops but left planted area estimates for oil-type sunflower at 1.54 million acres and non-oil sunflower at 123,000 acres, both unchanged from the June report figures,” he said. “FSA will update the acreage report in mid-September.”

Later this fall, in October, USDA will provide its initial yield and production estimates for the 2022 oil-type and confection sunflower crop.

Sandbakken also noted that 2023 new crop contracts have started to come out.

“Contracts for 2023 crop production have started to roll out earlier than normal at the crush plants,” he said, adding that NuSun sunflower contracts are in a range of $23.50-$25.75 per hundredweight with high-oleics at $26-$26.75.

As of Aug. 29, nearby NuSun prices at the ADM crush plant in Enderlin, N.D., were listed at $26.85 per hundredweight for delivery in September. At the Cargill plant in West Fargo, N.D., the September delivery price for NuSun sunflower was $26.65 per hundredweight. That’s around $14 lower than the highs earlier in June.

Looking at 2022 new crop cash and Act of God (AOG) contracts for NuSun sunflower, the ADM plant in Enderlin was offering $26.85 cash and $26.15 with an AOG clause. Cargill in West Fargo was offering $26.65 cash for new crop NuSun sunflower.

High-oleic sunflower prices were $27.90 for delivery in September at the Cargill plant in West Fargo and $27.85 at ADM in Enderlin.

New crop high-oleic sunflower contracts were $27.85 cash and $27.15 with an AOG at Enderlin, while West Fargo offered a cash price of $27.90.

Elsewhere in North Dakota, the crush plant in Pingree listed a new crop high-oleic cash price of $27.55 and Hebron listed a cash price of $26.85.

Another thing for producers to consider is that sunflower is the only oilseed that pays premiums for oil content above 40 percent, according to Sandbakken. He pointed out that for each 1 percent of oil above 40 percent the crush plants will pay a 2 percent price premium.

“This would push a contract with 45 percent oil content gross return 10 percent higher per hundredweight. For example, the NuSun $23.50 contract increases to $25.85, and the $26.75 contract moves up to $29.40,” he explained.

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