Traders View

Date Added: 03/02/2012

Siberian cold air supports the market

Prices of oilseed rape have steadied on old crop and risen on new crop positions as cold European weather has caused market sentiment to improve. There are increasing worries over winterkill on crops of oilseed rape and cereals in Eastern Europe.

Spot rapemeal prices have gone up significantly allowing crush margins to improve in the near positions, however crush margins further forward are still poor. It will need rapeoil prices and rapemeal prices to improve in the forward positions in order to get the crushers to bid more aggressively ahead. However with continuing doubts over South American soya production we think there is a distinct possibility further gains will be possible.

Regards,

Owen