After reading through today’s crop report, I thought I’d send out market update on sunflowers. As many of you are experiencing, the warmer winter coupled with historically
high prices have put a damper on demand for both black oils and most birdfood mixes. Continued pressure from import options are helping keep prices soft, while crush bids are steadily dropping and soybean oil has been weak. The result is that we are finally seeing some substantial relief in oil sunflower prices.
While this is all good news for most folks, there are a couple factors to keep in mind that could put an end to this downward trend. Most importantly, this year’s domestic sunflower crop was one of the worst on record, so despite weak demand, the supply will remain tight until new crop 2012. Additionally, continued dry weather in South America is really hurting crop development there, so global stocks are tightening too.
Many buyers are taking the hand to mouth approach with their purchasing, which looks wise at this point. The million dollar question is when will the short supply catch up with the current demand levels? I’ll do what I can to help you realize that market bottom.
As for a few others, Nyjer will likely firm up as we move into Spring, and
Millet seed prices remain very stable.