NuSun sunflower saw a slight bump up in prices as the new year headed into its second week.
NuSun prices were $22 per hundredweight for delivery in January at area crush plants, an increase of 30-35 cents from the week before. Also, prices for February delivery were $23.50 per cwt, also 30-35 cents higher than prices the week prior.
New crop NuSun prices for 2013 were rolled out two weeks ago, offering cash and Act of God contracts at $23/cwt and $22/cwt, respectively. Those prices represented an increase of 25-30 cents.
“Old crop bird food prices remain at a premium to the crush plants at this time in a range of $22-$23.50,” said John Sandbakken, executive director of the National Sunflower Association. “High oleic sunflower contracts are also out and are priced at a $3 per hundredweight premium to NuSun contracts.”
In other market news, the U.S. Department of Agriculture released its annual crop production report for all crops on Friday, Jan. 11. USDA pegged 2012 sunflower production at 2.79 billion pounds in the report, up 37 percent from 2011. The U.S. average yield per acre increased 115 pounds from the year before to 1,513 pounds.
Also, planted area was 24 percent above last year and area harvested increased 26 percent from 2011.
In the USDA report, U.S. soybeans was considered neutral to bearish with USDA raising soybean production above the average estimate. The U.S. farm agency also increased the Brazilian soybean crop by 1.5 million metric tons from the previous month’s forecast, projecting the crop to be a record large at 82.5 million tons. Meanwhile, the Argentine soybean crop was projected at 54 million tons, down one million tons from the previous report.
“Overall oilseed fundamentals will continue to be tied to South American events,” Sandbakken said.
A total of 44,644 metric tons of oil-type sunflower was crushed in the month of December, according to the latest report from the NSA. That compares to 43,548 metric tons in November and 45,197 metric tons in December of last year.
For the year-end total from Oct. 1, 2012 to present, a total of 132,793 metric tons has been processed compared to 119,014 metric tons last year during the same time period.