At the CBoT, talk that wet weather could reduce US final corn acres has offered resistance to soybean prices. Traders are thinking that If US farmers are unable to plant intended corn acres they could shift to soybeans. US/World 2017/18 soybean supply outlook already looks burdensome and this would add to the stockpile. This dropped soybean prices to their lowest level since early April. Soy complex prices were also pressured by talk of lower soymeal demand and a drop in China soybean crush margins. There was talk that China may cancel some open US soybean sales leading traders to be concerned with lower Chinese export demand in the near term. Traders continue to the watch the political turmoil in Brazil as well. There is anxiety that if the Real continues to weaken it could trigger an increase in farmer selling and flood the pipeline with cheap soybeans and take away US export opportunities. Sunflower prices followed the price action on the CBoT at distance and ended the week mixed at down 20 cents to unchanged at the crush plants. Sunflower planting is moving along at or ahead of the five-year average. The two-week weather forecast in the US sunflower production region should allow for normal completion of planting. Weather and planting progress will remain the biggest short term question marks for traders.
Cash and Act of God (AOG) contracts are still available. 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 $16.60 contract with 45% oil content gross return 10% higher per cwt and would raise the cash price to $18.26. An AOG contract at $16.10 per hundredweight to $17.71.