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Sunflower prices move against the trendNSA President, Tim DeKrey says "in case you have not noticed, sunflower old and new crop prices have been bucking the downward trend of other commodities." In the last two weeks NuSun prices at the crushing plants for new crop delivery have increased by $1.00 per cwt. In the meantime, most commodity new crop prices have dropped with soybeans down 88 cents/bushel, spring wheat down 92 cents/ bushel, corn up 8 cents/ bushel and canola down $1.95 cwt. So what's happening? First of all there is very strong demand for key performance oils such as sunflower, corn and cotton. These oils tend to be in a class by themselves because of they are naturally stable and can be used in commercial frying operations without the need for hydrogenation. Sunflower is the preferred oil among the three because of its low level of saturated fatty acids. Recently, prices for corn and cotton oils have firmed up narrowing the price spread with sunflower oil and has allowed sunflower oil prices to remain steady. DeKrey said that attractive crop insurance options and the Act of God clause for all types of sunflower really take the risk out the market. "I can sleep at night knowing that my AOG contract for fall delivery is cancelled if I have a crop failure. I am also protected if prices fall between now and harvest. I can't do that with my other crops." Sunflower is in an intense competition with other crops for acres this growing season. This price surge is a final push for sunflower acres by the industry to meet growing market demand. This is especially important for producers to note as plantings of some crops are being delayed due to wet weather in the northern states and winter wheat is in the winter survival 'iffy' stage. Sunflower with its wide planting window offers producers a profitable alternative. The scenario also plays well into cropping after winter wheat in the High Plains region. "That choice worked very well last year for many producers," says Lance Russell, a sunflower producer, NSA board member and president of the Kansas Sunflower Commission from Hays, Kan. 5/19/08 Date: 5/13/08
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