Easier Tone in Birdseeds

PANAMA - Jun 17/16 - SNS -- Birdseed ingredient markets finished the week's trading on an easier note, influenced by week over week price declines in oilseeds.

The biggest changes were in oil-type sunflower, with prices down significantly in both spot and new crop shipping positions. White proso millet was nominally firmer, while confection sunflower and canaryseed were unchanged.

The U.S. based National Sunflower Association notes that oilseed markets continue to affected by the thought that a "wet spring in the south and increase in soybean prices (could) see some corn acres changing to soybeans."

When the USDA releases its seeded area estimates at the end of the month, markets expect the USDA to peg soybean plantings between 83.0 and 85.0 million acres, up from an intended 82.2 million.

"If soybean acres increase sharply after USDA's June 30 acreage report, soybean prices could fall sharply. The recent hot weather forecasts have intensified awareness of CBoT traders to the expected La Nina event this summer.

"Previous La Nina events, the latest being in 2012, have been linked to droughts. The latest 90-day forecast favors hot weather for the Midwest, with normal precipitation. These thoughts continue to fuel the rally in oilseeds and products."