Sunflower

Old crop NuSun and high-oleic sunflower prices were fairly stable heading into March with only slight variations.

“A smaller 2019 U.S. sunflower crop and good demand are supporting old crop NuSun and high-oleic prices, which ended the week down 5 cents to up 10 cents at the crush plants,” said John Sandbakken, National Sunflower Association executive director, commenting in the March 2 NSA newsletter.

Sandbakken also noted that as producers sign 2020 production contracts new crop prices were beginning to drift lower.

“Interest in sunflower production has been very high and producers are taking advantage of the attractive prices being offered by crushers and confection processors,” he said. “Despite the recent price downturn, new crop sunflower prices are still penciling out well.”

As of March 2, new crop NuSun prices were posted at $18.15 cash and $17.45 with an Act of God (AOG) clause at Enderlin. At West Fargo, new crop 2020 prices were posted at $18.10 cash and $17.60 with an AOG.

High-oleic 2020 new crop prices were posted at $18.55 cash and $17.85 with an AOG at Enderlin, and $18.10 cash and $17.60 with an AOG at West Fargo. New crop high-oleic prices at Pingree were listed at $18.05 cash, while cash prices at Hebron (Cargill) were listed at $16.80 cash and $16.30 with an AOG. At Hebron, (ADM) prices for new crop was $17.35 cash and $16.75 with an AOG.

As of March 2, old crop NuSun prices were $19.90 per hundredweight at the ADM crush plant in Enderlin, N.D., for March delivery and $18.90 for delivery in April. At the Cargill crush plant in West Fargo, N.D., the March delivery price was FH $20/LH $19.25 and $19 for April delivery.

High-oleic sunflower prices at Enderlin were $20.10 for March delivery and $19.15 for delivery in April. In West Fargo, the March delivery price was FH $20.25/LH $19.50 and $19.25 for delivery in April. High-oleic prices at Pingree, N.D., were $19.90 for delivery in March.

The price discovery period for crop insurance for sunflower ended on Feb. 28, however, the 2020 price elections for sunflower hadn’t been announced at the time of this writing.

Sandbakken noted that the price election for oil-type sunflowers is expected to be around $16.90 with confections at $22.60 per hundredweight.

One item that has caused a great deal of concern is the coronavirus, which has spread across the globe and has had a huge impact on the stock market and the commodity markets.

“Chicago Board of Trade traders continue to anxiously await new Chinese purchases to materialize after the signing of the Phase One trade deal,” he said. “China continues to battle the coronavirus outbreak, which has impacted soybean import needs.

“Some market analysts think the export surge from the trade deal will take several months to become visible with the potential to extend into this fall because of the outbreak,” he added. “In the week ahead, Chicago Board of Trade traders will continue to weigh the coronavirus impact on U.S. export demand and South American production prospects.”

Soybean producers in South America continue to make good progress with their soybean harvest and weather conditions so far have been favorable for producing a record soybean crop.

As he has for the past several weeks, Sandbakken recommended that producers consider the oil premiums that crush plants pay on sunflower for oil content above 40 percent.

“Considering oil premiums that are offered at the crush plants on oil content above 40 percent at a rate of 2 percent price premium for each 1 percent of oil above 40 percent; this pushes a contract with 45 percent oil content gross return 10 percent higher per hundredweight,” he concluded.

Smaller crop, good demand support sunflower prices

By MARK CONLON

For Farm & Ranch Guide

Old crop NuSun and high-oleic sunflower prices were fairly stable heading into March with only slight variations.

“A smaller 2019 U.S. sunflower crop and good demand are supporting old crop NuSun and high-oleic prices, which ended the week down 5 cents to up 10 cents at the crush plants,” said John Sandbakken, National Sunflower Association executive director, commenting in the March 2 NSA newsletter.

Sandbakken also noted that as producers sign 2020 production contracts new crop prices were beginning to drift lower.

“Interest in sunflower production has been very high and producers are taking advantage of the attractive prices being offered by crushers and confection processors,” he said. “Despite the recent price downturn, new crop sunflower prices are still penciling out well.”

As of March 2, new crop NuSun prices were posted at $18.15 cash and $17.45 with an Act of God (AOG) clause at Enderlin. At West Fargo, new crop 2020 prices were posted at $18.10 cash and $17.60 with an AOG.

High-oleic 2020 new crop prices were posted at $18.55 cash and $17.85 with an AOG at Enderlin, and $18.10 cash and $17.60 with an AOG at West Fargo. New crop high-oleic prices at Pingree were listed at $18.05 cash, while cash prices at Hebron (Cargill) were listed at $16.80 cash and $16.30 with an AOG. At Hebron, (ADM) prices for new crop was $17.35 cash and $16.75 with an AOG.

As of March 2, old crop NuSun prices were $19.90 per hundredweight at the ADM crush plant in Enderlin, N.D., for March delivery and $18.90 for delivery in April. At the Cargill crush plant in West Fargo, N.D., the March delivery price was FH $20/LH $19.25 and $19 for April delivery.

High-oleic sunflower prices at Enderlin were $20.10 for March delivery and $19.15 for delivery in April. In West Fargo, the March delivery price was FH $20.25/LH $19.50 and $19.25 for delivery in April. High-oleic prices at Pingree, N.D., were $19.90 for delivery in March.

The price discovery period for crop insurance for sunflower ended on Feb. 28, however, the 2020 price elections for sunflower hadn’t been announced at the time of this writing.

Sandbakken noted that the price election for oil-type sunflowers is expected to be around $16.90 with confections at $22.60 per hundredweight.

One item that has caused a great deal of concern is the coronavirus, which has spread across the globe and has had a huge impact on the stock market and the commodity markets.

“Chicago Board of Trade traders continue to anxiously await new Chinese purchases to materialize after the signing of the Phase One trade deal,” he said. “China continues to battle the coronavirus outbreak, which has impacted soybean import needs.

“Some market analysts think the export surge from the trade deal will take several months to become visible with the potential to extend into this fall because of the outbreak,” he added. “In the week ahead, Chicago Board of Trade traders will continue to weigh the coronavirus impact on U.S. export demand and South American production prospects.”

Soybean producers in South America continue to make good progress with their soybean harvest and weather conditions so far have been favorable for producing a record soybean crop.

As he has for the past several weeks, Sandbakken recommended that producers consider the oil premiums that crush plants pay on sunflower for oil content above 40 percent.

“Considering oil premiums that are offered at the crush plants on oil content above 40 percent at a rate of 2 percent price premium for each 1 percent of oil above 40 percent; this pushes a contract with 45 percent oil content gross return 10 percent higher per hundredweight,” he concluded.