Sunflower producers got a bit of good news as prices at area crush plants were up slightly in late April while new crop prices were unchanged from the week before.
鈥淣earby prices were unchanged to up 30 cents with new crop unchanged this week at the crush plants,鈥 commented John Sandbakken, executive director of the National Sunflower Association (NSA), writing in the April 23 NSA newsletter.
With spring planting just getting started on other grain commodities, Sandbakken pointed out that there was still time for producers to adjust their plans for this growing season to take advantage of the market opportunities that sunflowers can offer.
Referring to USDA鈥檚 March 28 planting intentions report, Sandbakken noted that sunflower acres are expected to be 31 percent below last year鈥檚 acreage level. That lower acreage provides an opportunity for producers to diversify market risk with some sunflower acres in 2024.
鈥淚f you are concerned about the weather impacting yields, plants are still offering Act of God (AOG) contracts for fall delivery,鈥 he said. 鈥淭hese 鈥榝ail safe鈥 contracts have become very popular with farmers throughout the production region. It provides an opportunity to 鈥榣ock in鈥 attractive prices now for fall delivery and removes that all important factor of 鈥榶ield risk鈥 when uncertain growing conditions exist.鈥
People are also reading…
As of April 23, ADM in Enderlin, N.D., listed $14 per hundredweight for NuSun delivery in April and May, and $14.70 for June. Cargill in West Fargo, N.D., listed NQ (No Quote) for April and May, and a $15.20 call option for June.
High-oleic sunflower prices at Enderlin were posted at $14.50 for delivery in April and May, and $15.20 for June delivery. West Fargo posted a price of $13.75 for delivery in April and May, and $15.25 for delivery in June.
For 2024 new crop high-oleic sunflower, West Fargo posted a $19.25 cash price and $19.25 with an AOG clause. Enderlin posted a $19 cash price and a call option with an AOG clause.
Sandbakken pointed out another thing to consider when making planting or marketing decisions is the oil premiums that crush plants pay on sunflowers. The plants, for sunflower only, add on a premium for oil content above 40 percent at a rate of 2 percent price premium for each 1 percent of oil above 40 percent. Adding on the premium would push a contract with 45 percent oil content gross return 10 percent higher per hundredweight.
鈥淭he $19-$19.25 base contract increases to around $21 when adding in the oil premium,鈥 he explained.
In the near term, Sandbakken noted, the market would be keeping tabs on the Middle East region after Israel鈥檚 rocket attack on Iran, U.S. planting progress, and harvest progress in South America.