Sunflower markets

Nearby old crop NuSun prices were unchanged to up $0.25 with high oleic unchanged to up $0.05 in the past week. June old crop prices were unchanged to up $0.60. New crop NuSun prices were down $0.15 to unchanged with high oleic new crop down $0.35 to unchanged. Despite the recent downward movement, new crop sunflower prices are still trading above historical levels. Something else to consider is the oil premiums that crush plants pay on sunflower. Sunflower is the only oilseed that pays premiums for oil content above 40%. 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 contract with 45% oil content gross return 10% higher per hundredweight and pushes a $17.30 contract up to $19. Regardless of recent positive news in U.S. and China relations, traders are questioning whether or not China will live up to its Phase 1 purchase commitments. Trade numbers released last week saw a sharp decline in U.S. exports to China and sowed doubt that Beijing would be able to live up to its initial commitment to buy $76.7 billion above 2017 levels for agricultural goods, manufactured goods, energy goods and services. Traders will no doubt continue keeping a close eye on weekly export sales reports in the weeks ahead. Coronavirus developments will also be closely monitored as states re-open their economies.