Birdseeds Continue to Rise
VANCOUVER - Sep 8/12 - SNS -- Birdseed ingredient markets continued to strengthen during the past week in sympathy with major grains and oilseeds, as well as their own fundamentals.
SunPrairie Grain's Kayla Burkhart notes that rising corn prices have contributed to improved demand for sunflower seed by the domestic oilseed crushing industry.
"Corn oil has gotten pretty expensive with the rise in corn prices so buyers have started using sunflower oil instead. A pickup in sunflower oil demand has resulted in NuSun prices rising quite drastically, dragging birdfood prices right along for the ride. Sunflower prices have been a bit resistant to declines in the soybean oil market lately and have been happy to increase prices when soybean oil has a good day.
"Prices will need to be careful about getting too high, though, as there does become a point where it gets cheaper to buy oil out of South America rather than paying for high priced US sunflowers. Birdfood demand is steady, but it is going to take a cold, harsh winter to get demand really excited."
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