MARKET DEVELOPMENT
Global Vegetable Oil Prices Continue To Struggle
Global Vegetable Oil Prices Continue To Struggle
23/08/2013 (The Prairie Star) - Global vegetable oil prices have continued to struggle and that’s been having an impact on high oil bearing seeds such as sunflower.
“The overall oil complex and palm oil in particular continues to struggle. This is having an impact on high oil bearing seeds such as sunflower,” said John Sandbakken, executive director of the National Sunflower Association, in NSA’s Daily Market newsletter.
“Sunflower prices are trending in the direction that the market believes that supplies will be fully adequate until the harvest of the new crop begins this fall,” he continued.
“The threat of South American oilseed imports making their way to American ports is also looming over the market adding further pressure to oilseed prices.”
At present the market is keeping a close watch on the weather as well as the condition and progress of the 2013 North American sunflower crop.
Traders look at the current weather pattern as nonthreatening to the crop.
“The Northern Plains has generally favorable conditions for developing sunflower,” Sandbakken noted. “However, the combination of late planting and lack of growing degree days will be of concern if it continues, as some of the crop may not be mature before the first fall freeze.
“The market will become more concerned about a lack of maturity to oilseed crops when the first freeze warnings turn up,” he added.
With the cooler weather pattern the first half of August, an early freeze is on the minds of many producers.
As of Aug. 12, 65 percent of North Dakota’s sunflower crop was rated in good condition and 13 percent in excellent condition. Twenty-one percent was rated fair and just three percent in poor condition.
Thirty-seven percent of the state’s sunflower crop was in the blooming stage. That’s more than double what it was the week before and compares to 95 percent at this time last year and 66 percent for the five-year average.
In South Dakota 53 percent of the crop was rated good/excellent, 24 percent fair, 22 percent poor and one percent very poor. Forty-one percent of South Dakota’s sunflower crop was in the bloom stage, about twice as much as the week prior and compares to 54 percent for the five-year average.
“More rain will be needed in August and September in some areas in order for the crop to reach full yield potential,” Sandbakken noted.
Kansas also nearly doubled the previous week’s blooming percentage with 54 percent in the blooming stage.
“Those states are all well behind where they were last year at this time,” according to Sandbakken. “Harvest is slowly getting underway in Texas, with just three percent of the crop harvested.
“Overall, most areas report the sunflower crop is in good condition.”
NuSun prices for August and September delivery remained unchanged from the previous week at $20.50-$20.60 per hundredweight. New crop prices were $20.75 to $20.50 depending on location.
“The overall oil complex and palm oil in particular continues to struggle. This is having an impact on high oil bearing seeds such as sunflower,” said John Sandbakken, executive director of the National Sunflower Association, in NSA’s Daily Market newsletter.
“Sunflower prices are trending in the direction that the market believes that supplies will be fully adequate until the harvest of the new crop begins this fall,” he continued.
“The threat of South American oilseed imports making their way to American ports is also looming over the market adding further pressure to oilseed prices.”
At present the market is keeping a close watch on the weather as well as the condition and progress of the 2013 North American sunflower crop.
Traders look at the current weather pattern as nonthreatening to the crop.
“The Northern Plains has generally favorable conditions for developing sunflower,” Sandbakken noted. “However, the combination of late planting and lack of growing degree days will be of concern if it continues, as some of the crop may not be mature before the first fall freeze.
“The market will become more concerned about a lack of maturity to oilseed crops when the first freeze warnings turn up,” he added.
With the cooler weather pattern the first half of August, an early freeze is on the minds of many producers.
As of Aug. 12, 65 percent of North Dakota’s sunflower crop was rated in good condition and 13 percent in excellent condition. Twenty-one percent was rated fair and just three percent in poor condition.
Thirty-seven percent of the state’s sunflower crop was in the blooming stage. That’s more than double what it was the week before and compares to 95 percent at this time last year and 66 percent for the five-year average.
In South Dakota 53 percent of the crop was rated good/excellent, 24 percent fair, 22 percent poor and one percent very poor. Forty-one percent of South Dakota’s sunflower crop was in the bloom stage, about twice as much as the week prior and compares to 54 percent for the five-year average.
“More rain will be needed in August and September in some areas in order for the crop to reach full yield potential,” Sandbakken noted.
Kansas also nearly doubled the previous week’s blooming percentage with 54 percent in the blooming stage.
“Those states are all well behind where they were last year at this time,” according to Sandbakken. “Harvest is slowly getting underway in Texas, with just three percent of the crop harvested.
“Overall, most areas report the sunflower crop is in good condition.”
NuSun prices for August and September delivery remained unchanged from the previous week at $20.50-$20.60 per hundredweight. New crop prices were $20.75 to $20.50 depending on location.