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Market showing bearish tendencies

Date Added: 18/02/2011

Market sets back to recover some of losses

This week has shown a major sell off as markets have become jittery over potential increased sources of supply. The Brazilian soy harvest is now over 5% complete with early yield indications good. Latest production guesses put the Brazillian crop at 71 million tonnes compared to 68 million tonnes last year. Also very provisional planting intentions in the US have indicated increased plantings of soya, corn and wheat. Prices of old crop oilseed rape have fallen under £400 per tonne on an ex farm basis, whilst new crop has traded below £350.00 per tonne for harvest movement.

 

However prices are since recovering as the market realizes that the fundamental reasons for the bull run have not changed with stocks of all commodities being drawn down to low levels. Whilst there is still uncertainty regarding future supplies that market cannot afford to fall if future plantings become jeopardized. We expect the oilseed rape market to remain firm until more certainty is known about where adequate future supplies of all vegetable oils are likely to be sourced.

 

 

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