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Trader's View

Date Added: 15/05/2012

Market struggling due to economic headwinds


Despite a bullish USDA report for soyabeans last Thursday prices of oilseed rape have recently shown significant losses in the last week.

 

Trading losses reported by JP Morgan and also Greek debt problems have caused a selloff of most commodities, but soyabeans were hit harder than most commodities as spreads between corn and soya were aggressively unwound.

 

Harvest oilseed rape prices are now struggling to make £350/tonne ex farm, but there is more of a carry into November equating to £8.00/tonne.

 

Our opinion is that prices should recover due to tight soya stocks and low forecast EU oilseed production for the 2012 harvest. The rapid pace of corn and soya planting in the US can be viewed as a bearish factor, but any weather problems have the capacity to send prices higher.

 

Regards,

 

Owen

 

Owen Cligg

Trading Manager

United Oilseeds Marketing Ltd

Tel: 01380 729 200

DDI: 01380 732 313

Mob: 07787 563 703

Email: owenc@unitedoilseeds.co.uk

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