Sunflower 2024 crop insurance prices lower

Sunflower producers will be taking lower crop insurance prices into consideration as they make their plans for spring planting in 2024.

After gathering data through February, USDA's Risk Management Agency (RMA) calculated crop insurance prices for spring crops with many crops coming in lower compared to last year.

"Spring insurance prices followed the market lower the past month and have fallen from last year for all major crops," commented John Sandbakken, executive director of the National Sunflower Association (NSA), writing in the March 8 NSA newsletter.

"On the sunflower side, the projected price is 22 percent lower than last year at $23.80 for oil-type sunflower and 12 percent lower for confection sunflower at $28.80," he continued. "At these lower prices, the good news is that crop insurance will be less expensive this year. The bad news is it's not giving as much protection for financial losses in the case of yield loss or severe declines in commodity prices."

Also in the RMA's 2024 revenue protection policies, the projected price for corn is pegged 27 percent lower than last year at $4.66 per bushel, while the soybean projected price is 16 percent lower at $11.55. For spring wheat, the projected price is $6.85, which is 30 percent lower than last year.

"Traders are anxiously awaiting USDA's release of its Prospective Plantings Report on March 28," Sandbakken pointed out. "Trade expectations about planted acreage will likely be in a wide range before the report is released.

After the release of the Prospective Plantings Report, the market will turn its attention to weather conditions in North America and 2024 U.S. oilseed crop prospects, which will progressively become a more important factor in price.

"Until the report is out, South American weather and crop production estimates along with the acreage debate should dominate the direction the market takes," he said.

Nearby sunflower prices were unchanged to up 50 cents with new crop prices unchanged at the area's crush plants for the week March 8.

As of March 8, ADM in Enderlin, N.D., listed $13.50 per hundredweight for NuSun delivery in March, April, and May. Cargill in West Fargo, N.D., listed No Quote for March and a $14.50 call price for April and May.

High-oleic sunflower prices at Enderlin were posted at $13.75 for delivery in March and April, and a cash price of $18.25 along with a $19.75 contract with an Act of God clause for 2024 new crop. West Fargo posted a price of $13.75 for delivery in March and April, and $19 for 2024 new crop.