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Currency and international markets fail to inspire

Date Added: 19/09/2014

By Owen Cligg, Trading Manager, United Oilseeds

Despite an improvement in Matif oilseed rape prices at the beginning of the week, UK oilseed rape prices have since come under pressure as currency has risen and futures prices fallen. Currency has risen to
£1 = €1.27  whilst November matif has fallen below €320.00. This puts the price of rapeseed in England at about £235 ex farm for the autumn, whilst £230 ex in Scotland is barely achievable.

Markets generally seem under pressure as US commentators report on a "Corn Tsunami" and better than expected soya yields. This combined with the realisation that a high percentage of French wheat may only be feed quality is giving buyers the upper hand and causing nervous sellers to bail out of long positions.
On the positive side biodiesel demand continues at a pace as cheap vegetable oil throughout the world provides a cheap feed stock. Low prices will no doubt help demand so this may yet give us some light at the end of tunnel.

Regards,

Owen

 

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