Like most other commodity markets, the sunflower market slowed down as the Christmas and New Year holidays approached.
“Nearby high olein prices were flat at 40 cents and NuSun was unchanged at crushers this week.” The new 2023 crop is unchanged,” commented John Sandbaken, executive director of the National Sunflower Association, in the National Sunflower Association’s Dec. 19 newsletter. “NuSun Cash is $26.25-$26.35 and $25.85 Law of God (AOG). High oleics are $27.35-$27.50 cash and $26.85-$27.00 AOG.”
As of Dec. 19, NuSun cash was trading at $24.40 per centiveight at ADM in Enderlin, ND, for December delivery and $24.65 for January delivery. NuSun cash prices at Cargill in West Fargo, ND, were posted at $24 for December delivery and $24.25 for January delivery.
ADM at Enderlin also announced a 2023 cash crop contract at $26.35, as well as an AOG (Act of God) contract at $25.85. Cargill in West Fargo was offering a 2023 new crop contract at $26.25
Nearby high oleic sunflowers in Enderlin and West Fargo were listed at $25.90 for December delivery and both offered $26.15 for January delivery.
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Cargill in West Fargo offered a new crop contract at $27.50, as well as an AOG contract at $27. ADMs in Enderlin’s new crop contracts were quoted at $27.35 cash and $26.85 with AOG.
Sandbakken also pointed out that producers should also take into account the oil premiums that millers pay for sunflower.
“Sunflower is the only oilseed that pays premiums for oil content above 40 percent,” he said. “Considering that oil premiums are offered in crushing plants on oil content above 40 percent at a rate of 2 percent price premium for every 1 percent of oil above 40 percent, this pushes the 45 percent gross oil return contract by 10 percent higher per hundred. The $25.85 AOG contract increases to $28.45 and the $27.50 cash contract moves to $30.25.”
Looking ahead, Sandbakken pointed out that there are several things that will attract a lot of market attention.
“In the near term, Chicago Board of Trade traders will be closely monitoring the latest headlines from Ukraine, a stronger dollar, demand news and La Niña weather in South America,” he said. “They are also preparing for the USDA’s annual crop production report that will be released in early January.”
Producers and marketers can expect to see yield, acreage and production adjustment figures for most crops included in the annual crop production report.
“The USDA made very little change to supply and demand in its December report,” he said. “Sunflower yield, area and production will be updated based on the October estimates.” With the holiday season upon us, trading is likely to be somewhat quiet and can be traded sideways until after the holidays.