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8 June 2012 Trader's View

Date Added: 08/06/2012

Soya regaining some bullish enthusiasm

Soya prices have surged to the upside on Wednesday and Thursday which in turn have supported new crop oilseed rape prices. Prices improved as China reduced interest rates and also forecast that soya imports would increase due to increased demand and smaller Chinese soya and rape crops. Other supportive factors include an Argentine farmers' strike and US drought conditions.

Fundamentally most commentators remain bullish to soya prices as stocks will be historically low until next year's South American supplies arrive in February 2013.

Old crop oilseed rape demand has now tailed off as new crop supplies are expected in July, ex farm values are about £360.00 ex. The United Oilseeds carte blanche compares very favourably to this level.

As regards new crop oilseed rape, ex farm values of £350.00 ex for harvest are now widely available rising to £360 to £365 ex farm for November. Demand for rape oil needs to improve in order to get prices to move to the next level but if soya oil supplies become short we are hopeful this may occur.

United Oilseeds will be at Cereals next week and look forward to seeing our suppliers and customers alike.

Regards,

Owen

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