Sunflower prices hold firm for another week

USDA’s April US/World supply and demand report was termed a nonevent by most of the trade. USDA lowered the Argentine soybean crop and raised Brazil soybean crop production as expected. They also lowered U.S. soybean carryout by only 5 million bushels, raised U.S. soymeal exports and increased U.S. soyoil ending stocks. Old and new crop sunflower prices have been relatively firm with little movement in the past week. New crop prices remain $1.65 to $2.65 per hundredweight higher than last year. There is still time to take advantage of the market opportunities that sunflowers can offer as crushing plants are still offering Act of God and cash new crop contracts. Sunflower is one of the only oilseeds that pay premiums 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 $18.70 contract with 45 percent oil content gross return 10 percent higher per hundredweight and would raise the cash price to over $20.50. An AOG contract at $18.10 per hundredweight to almost $20.00. Trading for the next few weeks will mainly revolve around the USDA reports, competition for 2018 acreage, export sales, plus news of any potential tariffs levied by China and impact it might have on U.S. exports.