Sunflower markets
A week ago, old crop NuSun and High Oleic prices ended unchanged to up $0.55 as crush plants offer prices not seen since the end of January. Something else to consider is the oil premiums that crush plants pay on sunflower. Considering oil premiums that are offered at the crush plants on oil content above 40% at a rate of 2% price premium for each 1% of oil above 40%; this pushes a seed delivery with 45% oil content gross return 10% higher per hundredweight.
A $20.50 March price increases to $22.55 with oil premium added in. New crop prices continued to drift lower as producers sign 2020 production contracts. Hybrid seed sales have been brisk in recent weeks as interest in sunflower production is very high and producers are taking advantage of the attractive prices being offered by crushers and confection processors. RMA has announced crop insurance prices for spring crops. Oil-type sunflower is $16.90 with confections at $22.60 per hundredweight. Both numbers are slightly higher than last year when oils were $16.70 with confections at $22.50. The 2020 prices for spring wheat, corn and soybean were all lower than 2019 prices. Spring wheat is down $0.21, corn is down $0.12 and soybeans came in at $9.17 per bushel which is down $0.37 from 2019. In general, commodity prices continue to be traded on the coronavirus impact on U.S. export demand and South American production prospects.