Sunflower markets continue to move higher
Traders are anxiously watching headlines regarding the delegation of leading U.S. officials visiting China trying to negotiate a resolution to the ongoing U.S./China trade spat. Some are saying both sides are open to negotiations and comprise. Others are saying the tariffs might just get triggered in May as the two nations are still too far apart. The trade is also talking about headlines that reference most all soybean sales to China now sourcing from non-U.S. origins. It seems like fewer and fewer companies are wanting to take the risk of selling U.S. beans to China until the situation is resolved. Price volatility for commodities caught in the crosshairs of the trade dispute could increase if the saber-rattling between the U.S. and China intensifies. For the most part sunflower has stayed out of the trade fight and prices have remained firm or trended higher the past few weeks. New crop sunflower prices continue to move higher than old crop as the industry is looking to increase 2018 acres over last year’s reduced level. Currently, new crop NuSun prices are 60 to 90 cents with high oleic new crop prices 75 cents to $1.10 per hundredweight higher than nearby old crop prices. In addition to news from China, weather and planting progress will remain the biggest short-term question marks for traders and will guide the market in the week ahead.