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Focus Turning on Demand for Vegetable Oils

Date Added: 01/11/2013

By Owen Cligg

Focus turning on demand for vegetable oils


Rapeseed prices started the week lower after the selloff of matif last week. However matif prices made good gains this week, partly due to a weaker euro versus dollar exchange rate and also due to an improvement in palm oil and soyoil prices. The price in sterling lagged somewhat as the pound has strengthened against the euro to £1.00 = 1.18 euros, but an ex farm price of £300.00/tonne is available pre Xmas in areas close to the crush.

Private estimates of the US soya and corn crops continue to increase, whilst Brazil continues to plant soya in to good conditions. Although this should be initially bearish, there may well be surprises in demand especially for vegetable oils. Although the biofuel mandate in Europe is likely to be capped at 6%, biodiesel mandates are increasing in Brazil and Indonesia whilst soyoil is currently finding demand from biodiesel in the US.

Regards,

Owen

 

 

 

 

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