New crop prices for oil sunflower continue to move higher adding another 5 to 10 cents per hundredweight this week. New crop prices are in a range of $17.45-$18.45 for NuSun with High Oleics at $17.95-$18.65 at the crush plants. 2018 new crop prices are now $2.00 per cwt. higher than last year at this same time. Something else to consider is the oil premiums that crush plants pay on sunflower. 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 and would raise the value of a $18.65 base contract to $20.51 per cwt. Old crop prices have climbed the past few weeks bucking the negative trend in oil values. Most fundamental news for oil has been negative lately with soybean oil and palm oil prices on the defensive. Frigid winter weather drove crush demand for soybean meal and pressured CBoT soyoil contracts as oil stocks started to build. This situation is normal as historically soybean oil prices hit a low point during January and February as meal drives the market. Adding more price pressure has been surging palm oil production, which is way ahead of last year at this time. A small 2017 US sunflower crop and good demand are supporting seed prices.
New crop sunflower prices are out at the crush plants with cash and Act of God (AOG) contracts available. Something else to consider is the 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%.