The ADM crush plant in Goodland, KS came out with 2019 AOG contracts for NuSun at $16.75 and high oleics at $18.00 today.
Nearby NuSun and high oleic prices at the crush plants ended the week mixed at unchanged to up 10 cents. In the past two weeks, the 2019 new crop high oleic price has moved 30 cents higher in some locations. 2019 new crop NuSun prices have remained unchanged. The market continues to watch developments in the US-China trade negotiations. China did come into the market and bought some soybeans this week. Traders welcomed the news but were somewhat disappointed as it is just a fraction of China's typical purchases from the US in a normal season. Price direction continues to be tied to export demand news and South American oilseed production prospects in the near term. With global soybean stocks growing, the market will need to hear about a weather problem in the Southern Hemisphere in order for the market to generate a sustained rally. Traders are also trying to guess the potential impact if the US Federal Reserve raises interest rates during 2019. This could lead to an even stronger dollar and would not be good for US exports. As time goes on, the weight of increased stocks could continue to be felt, particularly if the US Federal Reserve does indeed raise interest rates more than expected.
2019 new crop sunflower prices are out at the ND crush plants with cash and Act of God (AOG) contracts available. 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%. 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 AOG $16.50 contract increases to $18.15 and the cash $17.00 contract moves up to $18.70.