Sunflower markets reach a marketing year high

Old crop prices continued to move higher at the Northern crush plants gaining 25 cents and hitting $18.15 a week ago. This is the new market high for this marketing year. Birdfood prices in some locations have begun to move up as well. Nearby prices for oil-type sunflower are up about 20 percent from a year ago. Last year at this same time, ample supplies, strong deliveries by producers and a large old crop inventory kept the pipeline full at the crush plants keeping a lid on prices. That’s not the case this year as a smaller 2017 crop coupled with smaller beginning stocks has the industry using up stocks to meet demand. New crop prices are also significantly higher. Last year at this same time new crop NuSun prices were in a range of $14.70 to $16.60 with high oleics at $16.70 to $17.00. Looking at current new crop prices this represents an increase of $2.15 to $3.00 for NuSun prices and $1.75 to $2.15 for high oleics versus last year. This positive price trend should continue through the rest of the 2017/18 marketing year. With oilseed planting well under way the markets will begin to trade U.S. weather and crop progress conditions to a greater degree. Traders will also be anxiously watching headlines regarding the delegation of leading U.S. officials visiting China in early June trying to negotiate a resolution to the ongoing U.S./China trade spat.