Sunflower markets

Nearby sunflower prices continued under pressure a week ago due to increased producer sales and delivery of seed ahead of spring planting. Nearby NuSun and high oleic prices were unchanged to down $0.45 depending on delivery point. New crop prices were also lower down 30 to 40 cents as producers are taking advantage of attractive 2020 new crop prices and signing contracts for delivery this fall. So far, there are no major planting delays with little weather issues occurring in the U.S. as planting progress is off to an average start. Traders are expecting good planting progress to continue across the Midwest in the days ahead. With the recent drop in corn prices, some feel intended planted acres for corn may get switched to soybeans instead. USDA indicated that U.S. soybean growers would plant 83.5 million acres in 2020, up 10% from last year. Some in the industry feel that planted soybean acres might be closer to 84.5 or 85 million acres given current corn prices. If realized this would be the third highest planted acreage on record and could pressure new crop oilseed prices as soybeans face a plentiful global supply and stiff international competition. The potential of increased soybean acres coupled with the unknown impact of the coronavirus on demand leaves the market murky at best in the short term. Markets will probably trade mostly sideways until more is known later this spring and early summer.