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Traders view 04/03/2011

Date Added: 04/03/2011

Bullish sentiment returns

Rapeseed markets have rallied sharply over the last week. The susprise has been that the old crop has moved moved at a faster rate than the new crop. After the major sell off last week primarilary due to liquidation of fund positions, end consumer buyers were initially active in sending prices higher. However old crop rapemeal is still difficult to sell and it is only the rapeoil component that is supporting prices. However the extent of the rise in old crop means that crush margins are being eroded and it maybe that the latest price rise becomes unsustainable due the large premium over new crop prices.

We would suggest that old crop at back over £400/tonne is now a selling opportunity whilst there may still be some more potential in new crop prices to rise. The uncertainity of weather and size of plantings during the spring and summer should continue to support the market.

Owen

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