The farmer-owned oilseed specialists
< Back to list

Market showing confusing signals

Date Added: 14/03/2014

By Owen Cligg

Rapeseed prices have been quite volatile this week. Old crop prices are still valued at about £320.00 ex but sold off on Wednesday and Thursday before recovering on Friday. Losses were precipitated by cancellations of Brazilian soybeans to China, the interesting point being US cancellations were anticipated instead.

However, freight may have already been booked on the US beans making them difficult to unwind. Chinese data of poorer economic growth than expected, high soya stocks and poor crush margins all add to the bearish sentiment. Rapeseed prices though seem supported as Australian arrivals are either delayed or diverted elsewhere.

As regards new crop, prices are currently £280 to £285 ex for harvest movement. We think prices could be supported if palm oil prices continue to rise as dry weather in Indonesia and Malaysia is potentially reducing palm yields in the future. Ukraine and Crimea is adding to the uncertainty in the market as the EU relies on Ukrainian imports of oilseed rape at harvest to keep internal European prices in check.

Regards,

Owen

 

< Back to list
© Copyright 2017 United Oilseeds  |  Developed by Boson Media