The markets have been ugly and extremely volatile for most crops since early July. Sunflower prices on the other hand have been quietly steady. Nearby high oleic prices are trading $8.50-$9.60 per hundredweight higher than last year at this same time. Last year, October new crop prices were in the range of $18.00-$18.25. October high oleic prices are currently in a range of $21.00-$22.00 at the crush plants. Something else to add to these prices is the oil premiums that are paid on sunflower. Sunflower is the only oilseed that pays premiums for oil content above 40%. Oil premiums 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%. For example, a $22.00 contract with 45% oil content results in a 10% price premium which pushes gross return to $24.20 per cwt. August 12th will be a huge day for commodity markets as USDA will release its latest supply and demand reports and first report of FSA certified acres. The FSA figures will be compared to the USDA June acreage report and will give the market a better idea of what got planted this year. This data and weather conditions will guide traders in the coming weeks. Normal to above normal temperatures are expected for the next two weeks in the sunflower growing region which will help with crop development.
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