Nearby prices were unchanged with new crop unchanged to up 10 cents at the crush plants this week. 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 AOG $23.10 contract increases to $25.40 and the cash $25.00 contract moves up to $27.50. On Tuesday, USDA will release its latest planted acres report. In the March intentions report producers indicated they planned to increase oil acres by 9% with confection acres down 8% from last year. Traders are anxious to confirm if this change in acres occurred or is higher than USDA estimates. If the March numbers come about U.S. sunflower production is forecast to be 2.4 billion pounds, which would represent an increase of 4% from last year. The higher production is based on an increase in planted area from 1.29 to 1.39 million acres and trend yields for oil type and confection sunflowers. Oil type sunflower production is projected to increase to 2.2 billion pounds, up 4% from MY 2025/26. USDA’s acreage report will be the main driver in the market following its release.
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