Nervous Finish in Birdseeds
PANAMA - Apr 6/18 - SNS -- North American birdseed ingredient markets posted a mixed finish on the week.
Canadian canaryseed, white proso millet and confection sunflower were generally unchanged, though oil type sunflower seed markets finished with a weaker tone.
Discussing the situation, the U.S. based National Sunflower Association (NSA) said, "Old and new crop sunflower prices weathered the trade war storm (last) week finishing mixed at down 10 cents to unchanged this week."
"Markets have been in an uproar by a potential trade war with China. President Trump has threatened to slap additional tariffs on 100 billion U.S. dollars of Chinese imports. This is on top of the initial 50 billion announced earlier.
"Nothing has been implemented yet, but the talk of an additional 25% tariff on US soybeans has clearly created a heavy cloud over the market. This will probably continue until more certainty is known about the trade negotiations between the US and China.
"If the 25% tariff kicks in, traders feel the current large US soybean supply and slower demand for products will drive down new crop soybean prices as Chinese imports account for about 33% of the US soybean production each year. The USDA March planting intentions report gives producers a chance to see what others are thinking of planting this year and offers the ability to reset the crop plans if the market directs them to do this."