RMA starts process for sunflower crop insurance

February is an important month for sunflower producers, as well as market analysts, for a couple reasons: one, the discovery process in determining 2025 crop insurance price elections for sunflowers is underway; and two, harvest is underway in South America, which may influence markets.

The U.S. Department of Agriculture's Risk Management Agency (RMA) began the discovery process for crop insurance price elections on Feb. 3, according to John Sandbakken, executive director of the National Sunflower Association (NSA), writing in the Jan. 27 NSA newsletter.

"Producers have the option of choosing Yield Protection, Revenue Protection, and Revenue Protection with the Harvest Price Exclusion. All three policies have the same price election," he explained.

"Last year, the projected price for oil sunflower was $23.80 with confections at $28.80. Using the same oil versus confection price differential and based on the current Chicago Board of Trade (CBoT) December contract price, the projected price for oil sunflower would be about $22.50 with confections at $27.50. Final price elections will be announced in early March," he added.

Sandbakken noted that producers can follow the direction for sunflower price elections by watching the 2025 CBoT December soy oil contract during the month of February.

Regarding the soybean harvest that is taking place in South America, the trade will be keeping a close watch on weather conditions, yield, and production forecasts.

According to Sandbakken, most analysts are still expecting a bin-busting soybean crop of around 171-172 million metric tons (MMT) for Brazil this harvest. Last year, Brazil's soybean production was 153.5 MMT. Producers in Argentina are expected to produce 52 MMT of soybeans, which would be an 8 percent increase from the previous year.

Locally, Sandbakken noted that nearby sunflower prices for the week ending Jan. 24 were unchanged to up 30 cents. Also, 2025 new crop prices for sunflowers were unchanged at the crush plants and are available at $22.25 to $22.50 cash, and $21.75 to $24 with an Act of God (AOG) clause.

As of Jan. 27, high-oleic sunflower prices at the Cargill plant in West Fargo, N.D., were listed at $23 per hundredweight for delivery in February and March. Prices at the ADM plant in Enderlin, N.D., were listed at $23 for delivery in February, and $22.25 for delivery in March.

The West Fargo plant posted new crop contracts for 2025 high-oleic sunflowers of $23 cash, and $22.50 with an AOG clause. Enderlin posted a price of $22.25 cash and $21.75 with an AOG clause.

For NuSun sunflower, both plants posted NQ (No Quote) for February and March.

"Something else to consider is the oil premiums that crush plants pay on sunflowers," Sandbakken said, explaining that sunflower is the only oilseed that pays premiums for oil content above 40 percent.

"Considering oil premiums that are offered at the crush plants on oil content above 40 percent at a rate of 2 percent price premium for each 1 percent of oil above 40 percent; this pushes a contract with 45 percent oil content gross return 10 percent higher per hundredweight. The $22.50 cash contract increases to $24.75," he concluded.