Nearby and new crop prices were unchanged this week at the crush plants. There is still time for producers to adjust their plans for this growing season to take advantage of the market opportunities that sunflowers can offer. Markets have been volatile for most export dependent crops with the latest twists and turns in our fast shifting trade policy. The sunflower market is mainly centered on the U.S. market. It has not faced the same market pressure and offers the opportunity to diversify market risk in these turbulent times. If you are concerned about the weather impacting yields, plants are still offering Act of God (AOG) contracts for fall delivery. These ‘fail safe’ contracts have become very popular with farmers throughout the production region. It provides an opportunity to ‘lock in’ attractive prices now for fall delivery and removes that all important factor of ‘yield risk’ when uncertain growing conditions exist. Something else to consider is the oil premiums that crush plants pay on sunflower. Sunflower is the only oilseed that pays premiums for oil content above 40%. Considering oil premiums that are offered at the crush plants on oil content above 40% at a rate of 2% price premium for each 1% of oil above 40%; this pushes a contract with 45% oil content gross return 10% higher per cwt. The $22.70 base contract increases to around $25.00 when adding in the oil premium.
2025 new crop sunflower prices at the crush plants are available at cash $22.20-$22.70 and Act of God (AOG) $22.05-$23.00. Something else to consider is the oil premiums that crush plants pay on sunflowers. Sunflower is the only oilseed that pays premiums for oil content above 40%. Considering oil premiums that are offered at the crush plants on oil content above 40% at a rate of 2% price premium for each 1% of oil above 40%; this pushes a contract with 45% oil content gross return 10% higher per cwt. The $22.70 contract increases to $25.00.
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