Sunflower markets

Drought is spreading and intensifying in the Dakotas. Crush plants are still offering Act of God contracts for fall delivery. These fail-safe contracts have become very popular with farmers throughout the production region.

It provides an opportunity to lock in attractive prices now for fall delivery and removes that all-important factor of yield risk when uncertain growing conditions exist. Traders are still chattering about last week’s USDA reports which had producers in seven of the eight major sunflower production states expecting a decrease in sunflower acreage this year.

The USDA Planting Intentions report kicked off a rally in sunflower prices at the crush plants. Since March 31, sunflower prices have continued to find positive forward momentum on the possibility that lower than expected acres will be planted later this spring. Old crop is up $1.75 to $2.00 with new crop up $1.25 to $1.75. Market analysts expect the acreage discussion to continue into the foreseeable future as the battle for acres continues.

The March report gave farmers a look at what others are thinking of planting this year. Depleted soil moisture levels suggest yield damage is imminent for some crops. There is still time to adjust your plans to take advantage of the market opportunities that drought tolerant sunflowers can offer.

Late season planted crops like sunflower can perform well and markets will reward that production. With lower than anticipated acres, diversifying market risk with some oil sunflower acres could be a good option in 2021.