Sunflower prices hold steady despite turmoil
Planting of the 2018 sunflower crop is complete and, in most cases, ahead of the five-year average in development. In states reporting crop conditions, the crop is being rated at 70 to 87 percent good to excellent condition. Last year at this same time very little of the crop was rated as good to excellent due to severe drought conditions impacting the Dakotas. Above trend yields are expected if current crop conditions continue. Sunflower prices have held up quite well given all the market turmoil. Old crop finished unchanged to up 5 cents a week ago. New crop prices were down 5 cents to unchanged. The sunflower market is reflecting supply and demand fundamentals for this time of year. CBoT traders continue to be influenced by US-China trade war headlines and prospects for a large 2018 US soybean crop. This month’s USDA supply and demand report was viewed as bearish by the trade. USDA increased 2018 soybean production to 4.3 billion bushels making a big crop a little bigger. For the first time USDA incorporated the impact of Chinese soybean import duties into their estimates, which drove exports down 250 million bushels, and boosted domestic soybean ending stocks to 580 million bushels, up from 385 million bushels in June. In the week ahead, sunflower trading will be influenced by crop conditions and progress along with weather conditions.