Nearby sunflower prices continue to trade above the 60 day moving average price at the crush plants. This week nearby sunflower prices were unchanged to up 25 cents with new crop unchanged at the crush plants. If you are concerned about the weather impacting yields, plants are still offering Act of God (AOG) new crop contracts for fall delivery. 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%. On the CBoT, Brazil’s record breaking harvest and U.S. planting progress is making it hard for prices to find any forward momentum right now. The brisk planting progress is boosting trader’s thoughts on prospects for historically high acreage and a record harvest. Traders are also on the lookout for fresh headlines regarding U.S.-China trade relations. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will meet with their Chinese counterparts in Switzerland on the weekend to discuss economic and trade matters. The report boosted hopes that the two sides may reach some kind of agreement to dial back steep tariffs that have fueled worries over recession. Next week USDA will release the World Agricultural Supply and Demand Estimates (WASDE) report for May, which includes the first detailed forecast for 2025-26 production of corn, wheat and soybeans. WASDE news, weather and planting progress will be the main price determining factors in the week ahead.
2025 new crop sunflower prices at the crush plants are available at cash $22.20-$22.70 and Act of God (AOG) $21.70-$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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