I just have used them dry so that they hold more juicy poop. Since you change it so often I guess you would rather have it pre-fluffed when you put it in the cage. It does look like it would be nice on the floor of the parrot cage the way you have it. Here, I have not used it because I want something to add to my garden compost besides pine -- which is free here in the forest! I used the alfalfa pellets for the barred hollands this time. It smells very nice and grassy. I already used it on my Iris for fertilizer -- it will be even better with chick poop added and mixed in and fluffed with chicken power!
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Here you can see the whole green pellets. Absorbs spilled water and poop very well, as well as the pine, only better for my garden. I used some paper from the shredder, but am not too happy with that, it is sticking to the chicks feet when it gets pooped.