Sunflowers markets stay out of the trade fight and remain firm

Traders will be anxiously watch headlines regarding the delegation of leading U.S. officials visiting China this week trying to negotiate a resolution to the ongoing U.S./China trade spat. Talk in the oilseed market has been dominated by headlines regarding U.S./China trade tensions. 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. Old crop prices ended the week unchanged to up 10 cents. 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. Something else to consider is the oil premiums that crush plants pay on sunflower. These premiums 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. An $18.90 contract would be $20.80 and $18.25 AOG contract goes over $20.00. With oilseed planting wrapping up, U.S. weather and crop progress conditions will soon start to take on a much more prominent role.