Sunflower Highlights

Post Date: Dec 11 2017

SunOpta Inc. Moving All Production to Crookston, MN

SunOpta Inc., a leading global company focused on organic, non-genetically modified and specialty foods, announced last week that it is making a significant investment in its roasted snacks operations at its facility in Crookston, MN. In conjunction with the investment, customers and capabilities from its Wahpeton, ND roasting facility will be consolidated into the Crookston location, and operations at the Wahpeton location are anticipated to cease during the second fiscal quarter of 2018. These investments further the Company’s ongoing commitment to produce food products of the highest quality and safety for its customers and are expected to provide significant operational efficiencies as part of the company’s ongoing portfolio optimization strategy and Value Creation Plan. The company expects to incur expenses relating to the Wahpeton facility closure of approximately $2.0 million to $2.5 million related to asset impairment charges and severance costs of which less than $1.0 million is expected to be cash. These charges are expected to be recognized during the fourth quarter of fiscal 2017.

Exports of Sunflower Oil, Kernel, and In-Shell Sunflower All Increase

In the first month of the 2017-18 marketing years, exports of sunflower oil are off to a strong start. Sunflower oil exports are up from 2,243 metric tons (MT) in October 2016 to 3,168 MT in October of 2017. Canada remains the top importer of U.S. sunflower oil; in the first month of this marketing year, Canada imported 1,995 MT of sunflower oil. That’s up from 1,640 MT during the same time period a year ago. Exports of confection sunflower, both in-shell and kernel, are up as well. In October 2017, 4,776 MT of in-shell sunflower was exported; that’s up from 3,918 MT during the same time period last year. Mexico and Spain are the top importers of in-shell sunflower. Exports of kernel are up from 819 MT during October 2016 to 1,069 MT in October 2017. Canada and Mexico are the leaders in kernel imports: Canada imported 384 MT in October 2017 and Mexico 210 MT.

Registration is open for the 2018 NSA Research Forum, scheduled for January 10-11, 2018 at the Delta by Marriott in Fargo, ND. Click here to register online now for the early bird price of $130 at . Registration will increase to $145 on December 29, 2017. Registration at the door will be $170. No refunds will be given after December29, 2017. Additional banquet tickets can be purchased for $40 each. If you have questions, contact Tina Mittelsteadt at (888)718-7033 ext. 3 or email her at tinam@sunflowernsa.com. See you in Fargo!

Holiday Break

This edition of Sunflower Highlights will be the last for 2017. We will return with the weekly newsletter on Tuesday, January 2, 2018. We wish you and yours a happy holiday season!

Seed Quality

High Plains	2017	2016
Oil Content	39.0%	40.8%
Foreign Material	6.0%	6.3%
Moisture	8.1%	7.5%
Test Weight	28.5 lbs	30.4 lbs
Northern Plains	2017	2016
Oil Content	42.7%	43.5%
Foreign Material	4.8%	4.5%
Moisture	9.3%	9.0%
Test Weight	29.2 lbs	30.5 lbs

Upcoming Events

January 10-11, 2018 - NSA Research Forum, Fargo, ND
June 26-28 ,2018 - NSA Summer Seminar, Arrowwod Resort, Alexandria, MN

Markets

Sunflower prices at the crush plants ended the week mixed at down 10 cents to unchanged. Birdfood prices continue in a holding pattern. A year ago, harvest pressure and heavy producer selling caused prices to crash and nearby sunflower prices were trading in range of $14.35-$14.75 at the crush plants. What a difference a year makes as reduced acreage and yields have led to little harvest pressure this year. Nearby prices are $2.00-$3.40 per cwt. higher this year versus last year at this time. It is very possible that the market low has already been established and prices will remain relatively firm for the foreseeable future. CBoT traders are expecting grain and oilseed prices to remain mostly stable for the next couple months. The annual acreage battle will crank up in the US after the new year. Soybean supply is at a record global level. Wheat and corn are also facing a global supply glut and stiff international competition. October export volumes of the big three crops were some of the smallest in recent decades raising a red flag with traders. The market is closely watching developments and price direction will be determined by export demand news and South American oilseed production prospects in the near term. USDA will release its supply and demand report this week. Traders are anticipating that any significant changes to production, stocks and usage will come in the January report.

Weekly Prices Recorded on Monday, December 11, 2017 ($/CWT)

	Deliver	Last Year	Last Week	This Week	Change	2017 NEW Crop
Chicago Oil	Nearby	36.76	33.36	33.40	-.04	33.59
Fargo, ND	NuSun	14.35	17.80	17.70	-.10	18.00
Fargo, ND	High Oleic	NQ	17.60	17.60	NC	18.25
Enderlin, ND	NuSun	14.75	17.50	17.45	-.05	18.15
Enderlin, ND	High Oleic	NQ	17.50	17.45	-.05	18.15
Goodland, KS	NuSun	14.60	16.60	16.55	-.05	17.00
Goodland, KS	High Oleic	16.10	17.60	17.55	-.05	18.00

Prices recorded here are believed to be reliable at the time of posting. All prices are subject to change. Contact these facilities for complete market details.

U.S. CRUDE OIL VALUES recorded on Monday, December 11, 2017
(dollars per 100 lb. internal U.S. location)

	Last Year	Last Week	This Week	Change
Soybean Oil	35.97	31.94	31.96	+.02
Cotton Oil (psby)	44.97	32.36	32.46	+.10
Corn Oil	42.50	37.50	37.50	NC