By MARK CONLON, Editor
As the region’s sunflower producers completed planting and the crop began to emerge, attention shifted to weather and demand issues. Now the market was waiting for the actual planted acreage report which was due out June 29.
“The main market focus will remain on demand news and weather related events,” said John Sandbakken, executive director of the National Sunflower Association, Mandan, N.D.
“The next big market mover will be USDA’s planted acreage report which will released on June 29,” he continued. “USDA will not report planted acres till the end of the month, but the private analysts’ estimates are starting to be released. Most reports indicate higher corn and soybean acres than USDA estimates.”
In the oilseed complex in mid June oil prices continued to lag due in part to oil stocks being reported higher than expected which pressured oil values.
“USDA had a few surprises for traders in the June supply and demand report,” Sandbakken said. “USDA lowered old crop oilseed ending stocks more than expected and slightly lowered new crop carryover stocks as well. World ending stocks were higher than expected for corn and soybeans.”
Because sunflower planting finished ahead of the five-year average, many traders are thinking that yields will be above average this year as well.
“Sunflower ending stocks will be extremely tight by the end of September and processors will be eager to receive new crop seeds,” he said. “So far weather has not been a huge factor but that could change. There is a long way to go before the crop is made in the Northern Hemisphere. Late July to early September is the critical time frame for oilseeds.”
Until the planted acreage report is released, he said the market would focus on weather and demand news, as well as the condition of this year’s crop as it continues to grow.
According to Sandbakken, the condition of this year’s crop was expected to show a decline in the good to excellent categories in mid June as moisture was becoming a concern in many areas of the Midwest. He also noted that less than ideal conditions were expected to hamper growing conditions in southern areas of the Corn Belt for the rest of the month.
While most areas of North and South Dakota and Minnesota reported adequate to surplus topsoil and subsoil moisture, such was not the case in much of Kansas, Colorado and Texas where nearly all topsoil and subsoil moisture is reported short or very short.
“In areas of the High Plains where winter wheat harvest is nearing completion, growers will have decisions to make on double crop acres where little soil moisture is available,” Sandbakken said.
In other news, he noted that outside markets will be influenced by European news to bailout Spanish banks to the tune of $125 billion. Also, Greek elections have created worries over its status as a member of the European Union.
Looking at the May crush, he noted a total of 14,032 metric tons of oil-type sunflower was crushed for the month. That compares to 36,383 mt in April and 30,044 mt in May of last year. For the year-end total from Oct. 1, 2011 to present, a total of 282,992 mt has been processed compared to 467,241 mt last year during the same time period.
As of June 18, NuSun prices for June delivery remained unchanged at $24.70 while prices for July delivery were also unchanged at $24.60. New crop prices were at $22.60.
Farm and Ranch Guide