Easier Tone in Birdseeds

PANAMA - Aug 14/16 - SNS -- Birdseed ingredient markets unchanged to firmer on strength in oil-type sunflower seed markets.

The U.S. based National Sunflower Association (NSA) notes, "Sunflower prices . . . have been quietly picking up steam. Oil values have been gaining on meal and this has been positive for sunflower prices. Old crop NuSun prices have added 50 cents to $1.10 per hundredweight since the July low at the crush plants.

"When initially announced last fall, new crop NuSun prices were in a range of $16.50-$16.70 in the Northern Plains and $16.00 in the High Plains. The new crop highs this year were set at $18.15 in the Northern Plains and $17.90 in the High Plains in June. New crop prices have also followed the recent oil rally and are now only 5 to 10 cents off these highs.

"Something else to add into the new crop price is the oil premiums that are paid on sunflower. Oil premiums are offered at the crush plants on oil content above 40% at a rate of 2% price premium for each 1% of oil above 40%. For example, a $18.05 contract with 45% oil content results in a 10% price premium which pushes gross return to $19.85 per cwt. Crushers are still offering 2016 new crop NuSun and high oleic sunflower contracts."