Sunflower prices maintain a positive trend

Old crop prices ended the week unchanged to up 10 cents. Sunflower prices have maintained a positive trend in comparison to last year at this same time. Nearby prices for oil-type sunflower are up about 20 percent from a year ago. Last year at this same time, ample supplies, strong deliveries by producers and a large old crop inventory kept the pipeline full at the crush plants, keeping a lid on prices. That’s not the case this year as a smaller 2017 crop coupled with smaller beginning stocks has the industry using up stocks to meet demand. New crop prices are also significantly higher. Last year at this same time new crop NuSun prices were in a range of $14.90 to $16.65 with high oleics at $16.90 to $17.00. Looking at current new crop prices this represents an increase of $2.05 to $2.80 for NuSun prices and $1.75 to $1.95 for high oleics versus last year. This positive price trend should continue through the rest of the 2017/18 marketing year. Talk at the Chicago Board of Trade continues to be dominated by headlines regarding U.S./China trade tensions. Chinese buyers canceled more orders for U.S. soybeans a week ago; at the same time, farmers in China are being encouraged to plant more soybeans. This is creating extreme volatility in the market and is dragging down soybean prices on the CBoT. China, weather and planting progress will remain the biggest short-term question marks for traders.