USA, (Soyatech)12/10/2001 - Reaching the consumer is the goal of everycommodity group. Results of a sunflower seed phytochemical analysis arepaying off in national media attention. The October issue of Fitnesshighlights the nutritional benefits of seeds to its health consciousreaders with a paragraph entitled 'Small Seeds, Big Results' and directsreaders to the NSA web site for more information. In a piece entitled"Scoop the Party Nuts" in the November issue of Mademoiselle, sunflowerseeds are included in the list as a 'nut' and the 'not so nutty' reasonfor eating them is that they contain phytochemicals that may improvememory and ability to concentrate. The November issue of a baking tradepublication entitled Baking Management featured an article on "Nuts andSeeds Add Special Extras to Bakery Foods" and specifically listed thebenefits of seeds as an ingredient to bakers. The demand for kernels hasbeen growing providing the 'producer choices' defined above.

PRODUCER MARKET CHOICES:Farmers like market choices when selling their sunflower crop. For thelast several years, the hulling market has been using certain oil-typevarieties in addition to confection types. The hulling market simplyremoves the hulls and sells the kernels into the bakery trade bothdomestically and overseas. This kernel market has been consistentlygrowing. Certain oil type hybrid planting seeds are acceptable as'hullers.' These hybrids have been very popular with farmers because theyhave opportunities to sell to the 'hullers,' the crushing plant or thebird food markets. It all depends on his crop quality and price as towhere the producer sells. Hybrid seed companies are developing more ofthese 'switch' hybrids and farmers will have more hybrid choices.Companies are adding the oleic gene to these hybrids as well. That canextend the shelf life of kernels or the seeds can be sold into the NuSunmarket. Both of these market options add additional value for theproducer.

MARKETS:Sunflower oil basis values are at an all-time high. It is unlikely thatbasis values can increase further without customers dropping sunflower oilfor a cheaper alternative. Additional strength in sunflower seed pricesneeds to come from a higher soy oil futures market. Concerns overArgentina's economy have been affecting the market this week. If Argentinadevalues its currency, it could affect US exporters' ability to competefor export sales.