A substantial decrease in sunflower oil-type acres is predicted for this growing season as prices at the crushing plants continue to face pressure from ample seed supplies from the last two growing seasons. Crop quality remains very good, and yields were usually above expectations.

Large supplies remain despite fewer planted sunflower acres in 2023. The crushers need time to use up the seed supply, which is reflected in the significant price spread between nearby and deferred contracts.

Crushing plants are still offering new-crop cash and Act of God (AOG) production contracts. AOG clauses mean the producer doesn’t have a production risk. Should drought, hail, insects, disease, or other acts of God, result in a yield loss and production per acre can’t cover a sale, the AOG clause kicks in.

Read more about the Sunflower crop outlook here.