Document Type

Other

Publication Date

4-1-1994

Keywords

sunflower, marketing strategies, prices, production

Extension Number

ExEx 5023

Department

Economics

Description

Price history suggests that any remaining old crop sunseed should be sold now. The sunflower (oil type) price in early April was a high as any price since 1986 (Fig 1). The average price of sunseed at Enderlin, N.D., from harvest in 1985 to March 1994 was 9.53 ¢/lb. Old crop price bids of 14 to 15 ¢/lb offered during early April not only exceed the long-term average price but also exceeded the 5-year average of 10.37 ¢/lb. A premium also was paid for high oil content. The new crop price level suggest that a set-up marketing plan for new crop should be considered. The new crop Enderlin sunseed bid exceeded the 5-year average most of the winter and was near 11 ¢/lb in early April. Farm level or local prices should have been around 10.5 ¢/lb. Forward pricing 30 to 40% of expected 1994 production by June 1, and more later if a weather rally occurs, may be a suitable plan for many producers. The national loan rate provides a floor price of 8.72 ¢/lb in case of lower prices later in the year. Remember, sunflowers produced in 0/92 acres as well as other acres on the same ASCS farm unit do not qualify for loan if the deficiency payment on the base crop is accepted.

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