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Traders View 18th March 2011

Date Added: 18/03/2011

Volatility continues

 

The market has experienced continued volatility this weak, firstly experiencing big losses as uncertainty prevailed only to be followed by large gains later in the weak. The bullish and bearish points of the market can be summarized as follows;

 Bullish

  • Low world stocks of corn and soya especially in the US

  • Low world stocks of oilseed rape
  • Higher crude oil prices supporting biodiesel production
  • Low EU oilseed rape 2011 production likely due to winter kill in Eastern Europe
  • Uncertainty on yield expectations of all commodities
  • Uncertainty on spring planting intentions, a battle for corn and soya acres

 

Bearish

 ·         High prices ration demand

·         High prices encourage extra production

·         World may go back into recession

·         High UK oilseed rape plantings, up 11% on last year

 

Regards,

 

Owen

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