One of the region’s crush plants has given producers something to think about with the release of new crop sunflower prices for 2020.
According to John Sandbakken, executive director of the National Sunflower Association, writing in NSA’s weekly newsletter on Sept. 30, the ADM Enderlin (N.D.) crush plant has come out with its cash prices and Act of God (AOG) contracts for 2020 new crop sunflower.
NuSun is at $17.70 cash and $17.20 with an AOG, Sandbakken noted, adding that high-oleic prices are $18 cash and $17.50 AOG.
“Something else to consider is the oil premiums that crush plants pay on sunflower,” Sandbakken said, adding that sunflower is the only oilseed that pays premiums for oil content above 40 percent.
“Considering oil premiums that are offered at the crush plants on oil content above 40 percent at a rate of 2 percent price premium for each 1 percent of oil above 40 percent, this pushes a contract with 45 percent oil content gross return 10 percent higher per hundredweight,” he explained. “The AOG $17.50 contract increases to $19.25 and the cash $18 contract moves up to $19.80.”
Sandbakken also noted that for the week ending Sept. 27, nearby prices at the crush plants ended mixed at down 10 cents to up 10 cents.
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“Nearby seed prices continue to trade above the 60-day moving average at the crush plants, and new crop prices remain at market highs set in early September,” he said.
In states reporting crop conditions, the crop is being rated at 71-81 percent good-to-excellent condition. According to the most recent crop progress report, 74 percent of the sunflower crop in North Dakota was rated in good-to-excellent condition with 22 percent rated fair and 4 percent poor-to-very poor. Minnesota also reported that 74 percent of its sunflower crop was in good-to-excellent condition with 24 percent rated fair and 2 percent poor-to-very poor.
“Sunflower crop development continues to remain behind the five-year average normal pace in most areas,” Sandbakken said. “A light frost is in the forecast for the Northern Plains, however, it should not affect the sunflower crop to a great degree.”
Sandbakken also noted that traders were expecting sunflower stocks to be down from a year ago in USDA’s Grain Stocks report and that’s one of the things they would be focusing on.
As of Sept. 30, NuSun prices at the Cargill crush plant in Fargo, N.D., were listed at $17.40 per hundredweight for delivery in October and November. At the ADM crush plant in Enderlin, N.D., NuSun prices for delivery in September and November were $17.30.
High-oleic sunflower prices at Fargo were $17.70 for delivery in October and November. At Enderlin high-oleic prices were $17.60 for October and November delivery. High-oleic prices at Pingree, N.D., for October delivery were $17 and $16.40 at Hebron, N.D.