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Traders View

Date Added: 01/06/2012

Sell off of markets continues

Oilseed rape prices fell during the week as all markets experienced the need to reduce risk as economic indicators continue to suggest problems ahead. Crude oil prices have fallen to $83/barrel on the WTI whilst Brent crude is now below $100/barrel.

 

Old crop prices have sold off to £360.00 ex as growers look to clear sheds, whilst harvest is now £345 to £350 ex farm.

 

In the light of the markets incurring such big losses oilseed rape prices are holding up reasonably well as the fundamental position remains supportive. Oil world’s latest estimate for the 2012 harvest EU osr crop is 18.1 million tonnes which is a 6 year low and will require a further reduction in crushings due to lack of supply. Also despite timely plantings of corn and soya in the US, potential yields could be under threat if dry weather continues. Lack of stocks of soya and corn mean that any potential hiccups in production will cause higher prices in order to ration demand.

Owen

 

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