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United Oilseeds Trader's View

Date Added: 06/07/2012

Hot weather continues in the U.S.

By Owen Cligg

 

US soya and corn futures have continued make significant gains as crop conditions deteriorate. This led to major gains on the Matif rapeseed contract on Thursday which pushed UK oilseed rape prices close to contract highs. Unfortunately a stronger currency on Friday with £1.00 = 1.26 euros has taken the shine off those values. Harvest oilseed rape is today valued at £372 to £378 ex depending on location.

Whilst hot weather in the US is driving prices upwards, wet weather in the UK is now causing some concern with a later harvest expected of unknown quality. We are expecting growers to start desiccating soon but this means much of the English harvest will not start until August.

Demand for rapeoil remains a concern as demand from the biodiesel sector remains below anticipated levels. However recent EU export sales of rapeoil to China should help tighten up the situation allowing rapeoil prices to rise.

Our position remains friendly to the market given the current fundamentals stay as they are.


Owen

 

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