Nearby prices at the crush plants are down 25 to 70 cents this week. Large seed deliveries are creating pressure on nearby prices at the crush plants. Harvest pressure is normal at this point of the new marketing year.
Currently the deferred contract prices are encouraging producers to put the crop in the bin and deliver after the initial harvest rush. Something else to consider is the oil premiums that crush plants pay on sunflowers. 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.
Another week of largely clear weather allowed sunflower harvest progress to advance. About 30% of sunflowers were in the bin as of last week, up from 15% seven days earlier and slightly ahead the prior five-year average of 29% for this time of year, the USDA said. In the past week, producers harvested an additional 185,850 acres pushing 2023 harvested acres to about 362,450 acres.
A pattern change is expected to arrive in the northern Plains this week as active weather returns with rainfall and wintry precipitation possible. This will make it more difficult to get harvest done in a timely manner.
Report provided by The National Sunflower Association.
