Birdseeds Helped by Oilseeds

PANAMA - Mar 12/16 - SNS -- North American birdseed ingredient markets finished the week's trading unchanged to firmer.

Confection sunflower, white proso millet and Canadian canaryseed markets were mostly unchanged on the week. By contrast, oil-type sunflower posted solid gains in sympathy with strength in canola and soybeans.

Looking at the situation, the U.S. based National Sunflower Association (NSA), noted, "New crop sunflower prices are very competitive with other crops and processors are still offering 2016 new crop cash and Act of God (AOG) contracts for fall delivery.

"Something else to keep in mind is 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, 45% oil content results in a 10% price premium which pushes gross returns from oil sunflower even higher."

Markets are looking toward the March 31 seeding intentions report from the USDA. The NSA notes that traders "are expecting slightly higher corn acres and slightly lower soybean acres versus last year. Oil sunflower acres should show an increase. Confection sunflower acres are expected to be lower than last year."