Farmers have taken advantage of the recent rally in birdfood prices as a lot of crop was traded in the past few weeks. Birdfood prices were as high as $22 per cwt but have since backed off into a range of $18-$19 on the increased sales. Prices at the crush plants have also been on the increase gaining $3.70 per cwt since the market low was set. Nearby prices ended the week mixed at unchanged to up 20 cents. Beneficial rain was received in some of the most drought stricken areas of the Dakotas this week. More precipitation will be needed during the remainder of the sunflower growing season to ensure good crop development. USDA shocked traders with a bearish crop production forecast for 2017 soybeans and corn this week. USDA’s rosier than expected production forecast sent CBoT contracts into a tailspin. Farmers and traders had been expecting a much more bearish forecast from USDA because of drought and other poor weather conditions. USDA estimated the US 2017 soybean crop at 4,381 million bushels, which if realized would be a new record. Traders were expecting a number closer to 4,212 million bushels. USDA estimates for global corn, soybean and wheat 2017/18 end stocks were also negative. The trade will continue to digest the USDA numbers in the near term. This and weather reports will control price direction.
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