U.S. Birdseeds Remain Firm

VANCOUVER - Jun 27/08 - SNS -- Birdseed ingredient markets were little changed in light trade during the past week, though markets in the U.S. maintain a firm tone over weather worries.

This was clearest in oil-type sunflower, which continue to be influenced by underlying fear in oilseed markets. Both spot and new crop values managed to advance slightly on the week, while confectionary sunflower was mostly unchanged.

Commenting on sunflower markets, the U.S. based National Sunflower Association said, "It will be August before an assessment of Midwest flooding and its impact on planted acreage will be known. Market sources indicate it's impossible to tell how many acres will be replanted, abandoned or switched from one crop to another at this point. USDA releases its annual planted acreage report on June 30th, but it will likely be the August crop production report before accurate information is available to the market.

"After the recent rally, futures prices are vulnerable for a setback because of potential profit taking by traders. Current prices for oilseeds, oils and meal could come under selling pressure due to improved weather in the Midwest, indications that their will be a stoppage of the Argentine farm strike and the decline in crude petroleum oil prices.

"Old crop sunflower supplies are drawing down with good demand from crushers and bird seed buyers. New crop prices for oil and confection sunflowers remain at historically high levels. The global supply and demand balances of oilseeds as well as of oil and meal are likely to remain tight, due to the low stocks at the start of the season and the strong demand during the rest of this marketing year."

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