New crop sunflower market continues upward trend

New crop sunflower prices continue to trend higher than old crop with the industry looking to increase 2018 acres over last year’s reduced level. Currently, new crop NuSun prices are 50 to 85 cents with high oleic new crop prices 50 cents to $1 per hundredweight higher than nearby old crop prices. Last year at this same time new crop NuSun prices were in a range of $14.70 to $16.60 with high oleics at $16.70 to $17.00. Looking at current new crop prices this represents an increase of $2 to $2.90 for NuSun prices and $1.70 to $1.90 for high oleics versus last year. The increase in prices has made sunflower an attractive crop to add into the crop mix for 2018 and diversify some market risk. Based on historical usage an increase in acres of 15 to 20 percent in 2018 can be added given current demand without impacting present prices to a great degree. This week a delegation of leading U.S. officials will be in China trying to negotiate a resolution to the ongoing US/China trade spat. Some are saying both sides are open to negotiations and comprise. Others are saying the tariffs might just get triggered in May as the two nations are still too far apart. Until this is resolved one-way or another it will make traders nervous and keep the markets on edge. The USDA report could be key to prices with its first US 2018/19 supply and demand outlook.