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Harvest pressure and large seed deliveries to the crush plants have caused nearby sunflower prices to slide last week. Harvest is rolling in the Northern Plains and producers have been very active sellers in the past two weeks. Initial yield reports continue to be very positive and quality is generally very good. Yields are being reported in the 1,500-2,400 pound range with some reports over 3,000 pounds. Early reports have oil content averaging 45% in the Northern Plains and this is helping to ease some of the drop off in lower nearby prices. 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. With most of the US crop rated in the good to excellent categories, yields and quality are expected to be above average and the trade is still assessing the size of the 2016 crop. Depending on the size of the crop, seed prices could continue to drift lower. After harvest deliveries, slow down at the plants and the producer selling pace slows down, prices will follow demand news.
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