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United Oilseeds Trader's View

Date Added: 29/06/2012

USDA Report Meets Market Expectations - by Owen Cligg

The USDA report today met market expectations reporting prospective plantings on 01/06/2012 at 76.1 million acres for soya beans and 96.4 million acres for corn. Whilst both figures are historically high the main focus is the current extreme hot weather affecting the US. Corn yields are likely to be significantly down as the hot weather impacts on pollination and soya acres may be diminished as many of the double cropped acres following wheat are unlikely to be planted due to the dry conditions. Corn and soya prices both continue to rise as the weather outlook continues to be hot and dry.

The fundamentals of the oilseed rape market are currently evenly balanced with limited supply contrasting against a diminishing demand especially for biodiesel. Oilseed rape prices are gaining following soya, harvest is now valued at about £365.00 ex for prompt movement. We are still optimistic there is still some upside for prices as crops deteriorate in the US and rapemeal and rapeoil demand improve in the EU.

Regards,

Owen

 

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