Mexican Uncertainty Weakens Canaryseed

VANCOUVER - Jul 17/10 - SNS -- Uncertainty about the status of canaryseed shipments to Mexico and the future for trade contributed to a weaker tone for the commodity during the past week.

Birdseed ingredient markets in the United States, on the other hand, were unchanged for millet and confectionary sunflower, but stronger for oil-type sunflower seed.

Commenting on markets, the U.S. based National Sunflower Association said, "Now that the planted area is known for sunflower in 2010 the market will focus on weather conditions and crop progress.

"USDA's weekly crop ratings show a dramatic improvement in the South Dakota crop compared to last week. Kansas and Colorado conditions were also improved while North Dakota and Minnesota conditions declined slightly from last week. Kansas plantings are reported 91% complete. The other key sunflower production states have finished planting this year's crop.

"As with most oilseeds August will be critical month for crop development and yield determination. Using USDA's figures for planted sunflower acres and given current old crop stocks the market should remain relatively firm in the months ahead. The crush pace is ahead of last year and demand remains stable with a slight increase expected as the economy strengthens.

"Depending on how the final 2010 production numbers pan out at harvest supply could be tight for oil sunflower seeds going into the next marketing year. With acreage figures now factored into the market, weather conditions will be the main driver in the months leading up to harvest this fall."