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United Oilseeds Trader's View - by Owen Cligg

Date Added: 01/02/2013

Sterling weakness continues to support the market

Oilseed rape prices have continued to rise as sterling has weakened further against the euro. At the time of writing £1=1.15 euros equating to ex farm prices of £385 to £390 ex farm for February/March movement. Meanwhile matif oilseed rape prices are remaining range bound as the euro is strengthening against the dollar as well as sterling.

The tone for oilseeds on the world stage remains firm as worries continue over dryness and heat effecting the Argentinian soya crop. Chinese demand is also supporting the market which is apparent by queues of ships waiting to load Brazillian soyabeans. Although we are still expecting a record Brazillian crop of over 80 million tonnes, wet weather is delaying harvest in the north meaning supplies are slow to reach the ports.

Our opinion is oilseed rape prices now represent good value in the old crop position and those with old crop left should consider being a scale up seller. As regards new crop prices, £350.00 ex is also widely available for harvest which is a good starting point to begin the selling campaign. There is, however, probably more upside on the harvest position rather than the old crop.

Regards

Owen

 

 

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