Sunflower producers facing upcoming options

Producers planning on planting sunflowers in 2024 will soon have options to consider regarding what type of protection they want for crop insurance this year.

The U.S. Department of Agriculture's Risk Management Agency began the discovery process to determine 2024 crop insurance price elections for sunflowers on Feb. 1.

"Producers have the option of choosing Yield Protection, Revenue Protection, and Revenue Protection with the Harvest Price Exclusion," commented John Sandbakken, executive director of the National Sunflower Association (NSA), writing in the Jan. 29 NSA newsletter. "All three policies have the same price election."

Producers can follow the direction for sunflower price elections by watching the 2024 Chicago Board of Trade (CBoT) December soy oil contract during the month of February. Sandbakken noted that last year the projected price for oil sunflower was $30.50 per hundredweight with confections at $32.60.

"Using the same oil versus confection price differential and based on the current CBoT December contract price, the projected price for oil sunflower would be about $24.30 with confections at $26.40," he said, adding that final price elections will be announced in early March.

In other news, the market is keeping a close watch on the soybean harvest that is currently underway in South America.

"This will have the trade keeping close tabs on weather conditions, yield, and production forecasts," he said.

In Argentina, growing conditions for the 2023-24 season were more favorable than the previous year when hot, dry weather reduced yields. As a result of the better conditions this year, analysts are expecting soybean production to be significantly higher at 52.5 million metric tons (MMT).

"In Brazil, most analysts are still expecting a bin-busting soybean crop of around 157 MMT," he said. "The market is also keeping a close eye on the Russia-Ukraine war as each country is a major grain exporter."

Nearby sunflower prices, for the week ending Jan. 26, were mixed at down $1 to unchanged. New crop prices for high-oleic sunflowers were unchanged.

Looking at local prices, as of Jan.29, ADM in Enderlin, N.D., listed $14 per hundredweight for NuSun delivery in both February and March. Cargill in Pingree, N.D., listed a $12.50 call price for NuSun sunflower delivery for February and listed No Quote (NQ) for March. Cargill in West Fargo, N.D., listed NQ for February and a $13 call price for March.

High-oleic sunflower prices at Enderlin were posted at $14.75 for delivery in February, and $19.50 contract with an Act of God (AOG) clause for 2024 new crop. West Fargo posted NQ for February, and $18 cash and $19.50 with an AOG clause for 2024 new crop. Pingree listed a listed NQ for February and 2024 new crop.