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Matif improves following soyabean rise

Date Added: 27/05/2016

By Owen Cligg, Tradinng Manager, United Oilseeds

 This week matif rapeseed prices have improved as soyabean prices recovered recent losses. The continued rally in soyameal has been unrelenting, as shorts need to get themselves covered. One theory is that Argentine soymeal purchases have been hedged against US soyameal futures, which have had to be covered, as it has become apparent that these soyameal supplies are not available as previously expected.  Not only have the flooding issues reduced yield, but also quality, and Argentine crushers have been crushing more slowly in order to extract the maximum amount of protein.

The interesting factor is that it was anticipated that vegetable oil would be the product that would show most strength this summer, but it is the protein part of the equation which is currently driving prices. Our take is that vegetable oil prices will again have their day as palm oil and rape oil prices in particular will need to rise as their supply becomes restricted due to reduced production.

Currently UK  rapeseed prices are continued to be subdued by sterling strength -  old crop is £270 to £275 ex farm, whilst harvest values are in a range of £260 to £265 ex farm.

 

Regards,

 

Owen

 

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