Sunflower markets trend downward

Soybean prices have collapsed under the weight of the ongoing U.S.-China trade situation. Nearby soybean prices in many locations have fallen below $8 and in some cases below the cost of production. Last week the U.S. announced it was imposing a 25 percent tariff on $50 billion of Chinese products. There is speculation that China will retaliate on a similar amount of U.S. goods especially soybeans, which has led to the downturn in prices. Informa raised its soybean acreage forecast by about 500,000 acres from 89.4 million to just over 89.9 million acres adding further price pressure. Some in the trade think total planted U.S. soybean acres could be a bit north of 90 million this year. These facts compounded by mostly favorable weather conditions in the Midwest have created quite a headwind in the soybean market. Sunflower prices have held up quite well given all the market turmoil. Old crop finished mixed at down 10 to up 5 cents last week. New crop prices were down 10 to 20 cents. Overall the oilseed complex is under enormous pressure right now and this could eventually spill over into the sunflower market. If producers have not priced some 2018 new crop it might be an opportunity to do so as new crop is still every close to the season highs. China’s reaction to U.S. tariffs, crop conditions and weather will be the main market movers in the week ahead.