Birdseeds Fret About World Economy

VANCOUVER - Nov 20/10 - SNS -- Birdseed ingredient markets finished the weeks trading on a relatively firm note, though some weakness was evident in oil type sunflowers.

That market generally follows soybean and canola, both of which posted week over week price declines.

Discussing the situation, the U.S. based National Sunflower Associations aid, "Markets in general are under pressure largely due to internal factors in China. The Chinese Government is attempting to put a lid on food inflation.

"Measures taken include raising interest rates, selling commodities out of a government reserve, threatening to punish market speculators among others. There is even talk of establishing price ceilings. This has sent holders of long positions out of the Chicago commodities market and removed the price floor. China is such a huge market, in particular for world soybeans and vegetable oil, that when China sneezes everyone takes notice.

"The overall commodities market continues to show favorable fundamentals for most crops, including sunflower. The competition for 2011 acres continues to be high. However, the market increased so rapidly that a correction was due. The market should regain its footing when buyers choose to return taking advantage of lower prices. "