Birdseeds Buffeted by Oilseed Market Tussle

PANAMA - Jun 4/16 - SNS -- Birdseed ingredient markets were generally firmer during the past week in sympathy with grain and oilseed markets.

White proso millet seed finished the week up 25 cents per pound in both grower and inter-dealer markets, while confection sunflower and canaryseed were unchanged.

Oil-type sunflower showed good strength on the week, reflecting tension between market bulls and bears, believes the U.S. based National Sunflower Association.

Oilseed markets bulls are "trying to find a good reason to justify the rally in beans and meal. They are mainly linking this to new speculative buying on talk of higher US 2016-17 soybean demand. This train of thought is tied to lower South America supply and lower Argentine soybean quality. Others feel soybeans may be finding new buyers after reports El Nino has run its course and we are headed into a drier and warmer US summer as a La Nina event sets in," the NSA said.

"Market bears are confused by these thoughts and believe that there is an adequate nearby world supply of corn, wheat and soybeans. They also believe US farmers are cutting back on wheat and corn and adding soybean acres on this rally. Bears think US farmers will likely exceed the March planting intentions acreage figure by a large amount setting the market into a downward correction by late June or early July. They are looking at a favorable US Midwest two-week weather forecast and think a potential La Nina this summer could be weaker than earlier feared.

"Needless to say from now until the end of June the market will be in for an interesting ride as the bulls and bears fight it out to see who is correct," the NSA added.