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Trader's view - by Owen Cligg

Date Added: 08/03/2013

USDA Report Slightly Bearish

The USDA report on Friday 8th March has proved slightly bearish, causing oilseed prices to fall. Although US corn and soya stocks remain tight, world wheat stocks are pegged to increase by 1%.

The Argentine soya crop was estimated at 51.5 million tonnes, 1.5 million tonnes lower than last month, but still above local forecasts of around 48 million tonnes. The Brazilian soya crop was unchanged at 83.5 million tonnes.

Soyabean prices initially reacted to the downside and are trading at about 10 cents down at the time of writing. Matif OSR prices are trading at about 1 euro down.

UK prices for oilseed rape are holding steady, mainly because of a weaker sterling, £1=1.148. Ex farm values for March are holding at around £385.00 to £390.00 ex depending on location.

Crush margins for the mills are now reducing as physical supplies are harder to find and product values are coming under pressure. Markets are currently thinly traded and we a think a standoff is likely to develop between buyers and sellers until more is known about new crop prospects.

Regards,

Owen

 

 

 

 

 

 

 

 

 

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