Nearby prices were down $1.50 to $2.05 with new crop down $1.25 to $2.25 this week at the crush plants as sunflower values followed the huge selloff in CBoT soy oil futures contracts. CBoT soy oil values experienced a meltdown as traders fear the Biden administration will back off of anticipated higher biofuel targeted mandates. Traders were expecting the Biden administration to impose more ambitious quotas and stop exempting refineries from them. Rumors circulated that EPA is developing targets for biofuel that are likely to be relatively flat or even lower as it seeks to balance the interests of blue-collar refining workers and advance a clean-energy agenda. A broad market selloff that sent grain, stocks, crude oil, metals, livestock, and other commodities sharply lower amid concerns over rising inflation and the potential for interest rate hikes applied additional headwinds. Sunflower producers are in the home stretch of wrapping up this year’s planting season. Planting progress is equal to or ahead of last year at this same time in all states. As of June 13, 79% of expected 2021 sunflower acreage was in the ground, up from 59% from the week prior and ahead of the five-year average of 74%. On June 30, USDA will release its 2021 planted acres report and will be an important factor in determining old and new crop prices. Look for demand news and position squaring ahead of USDA’s acreage report to guide the market this week.

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