Sunflower prices finish mixed after chaotic week

Old and new crop sunflower prices weathered the trade war storm finishing mixed at down 10 cents to unchanged a week ago. Markets have been in an uproar by a potential trade war with China. President Trump has threatened to slap additional tariffs on 100 billion U.S. dollars of Chinese imports. This is on top of the initial 50 billion announced earlier. Nothing has been implemented yet, but the talk of an additional 25 percent tariff on U.S. soybeans has clearly created a heavy cloud over the market. This will probably continue until more certainty is known about the trade negotiations between the U.S. and China. If the 25 percent tariff kicks in, traders feel the current large U.S. soybean supply and slower demand for products will drive down new crop soybean prices as Chinese imports account for about 33 percent of the U.S. soybean production each year. The USDA March planting intentions report gives producers a chance to see what others are thinking of planting this year and offers the ability to reset the crop plans if the market directs them to do this. USDA estimated producers will plant 1.2 million acres to oil type sunflowers in 2018 representing a minor increase of 2 percent from 2017. The estimate for oil type varieties was lower than industry expectations. New crop prices are $2 to $2.30 per hundredweight higher than last year. Diversifying market risk with some sunflower acres could be a good option in 2018.