Sunflower Highlights

Post Date: May 23 2016

Crop Progress

Planting is moving right along - in North Dakota, 46% of the sunflower crop has been planted, well ahead of last year's 25% at this time and 18% average. Three percent of North Dakota's sunflower crop is already reported emerged. Minnesota producers are well ahead of schedule too, with 70% of the sunflower crop reported already planted.

Crop Progress - Monday, May 23, 2016

State	This Week	Last Week	Last Year	5 Year Average
North Dakota
Planted	46	21	25	18
Emerged	3	NA	NA	NA
South Dakota
Planted	14	2	3	5
Minnesota
Planted	70	57	61	38
Texas
Planted	34	33	60	52
Colorado
Planted	5	4	5	7
Kansas
Planted	NA	NA	4	8

Grower Report

Planting is moving along quickly for Mohall, ND producer Jeff Oberholtzer. Oberholtzer started planting last Thursday and plans to finish seeding 2,000 acres of high oleic sunflower by Wednesday. Oberholtzer’s area of north central North Dakota has been wet for several years, but Oberholtzer says this year’s dry weather has allowed him to plant on land that hasn’t been planted for three years.

The NSA’s 34th Annual Summer Seminar is just over a month away. Join us in Bismarck, ND on 28-30 for this informative and fun event. Register now on our website. Registration will increase to $325 and golf to $100 after June 3, so register now!

Market Update

For sunflower prices at various locations, visit our website.

Markets

Markets were rattled with talk of an expected U.S. interest rate hike and a favorable weather forecast last week. Big fund players cashed out of long positions on fear that the U.S. Federal Reserve could raise interest rates next month. A lot of money in the market is using grain as a hedge against inflation, and if interest rates go up, inflation goes down. The latest weather report was non-threatening and should aid planting progress across the Midwest. NOAA also released its three-month summer forecast this week. The sunflower growing region is expected to have normal to above normal temperatures and normal precipitation in June, July and August. Very dry conditions are prevalent across the sunflower growing region at this time. Sunflowers will do well in these types of conditions due to its drought tolerance. Other crops may suffer so weather will be a concern in the months ahead if this scenario plays out. Crushers are still offering 2016 new crop Act of God (AOG) NuSun and high oleic sunflower contracts. Something else to keep in mind is oil premiums that are paid on sunflower. Oil premiums 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%. Traders will be watching US planting progress, export news and harvest conditions in Argentina this week.