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USDA report keeps soya prices steady

Date Added: 10/06/2016

By Owen Cligg, Trading Manager, United Oilseeds

Today’s USDA report lowered South American soya production estimates to 97 million tonnes in Brazil and 56.5 million tonnes in Argentina. This had the effect of keeping Chicago soybean prices well bid and they touched over $12 a bushel on the USDA report news, before settling at unchanged to 15 cents up at time of writing.

The effect on matif rapeseed prices is somewhat muted and prices are currently €383 for November 2016 which is €2.00  down on the day. The UK rapeseed price has been supported by a weaker sterling, currently £1=€1.27  and harvest is £270 to £278 ex farm. Old crop demand is apparently now limited and those prices little better than harvest. Both Erith and Liverpool have announced their yearly shut down dates, so we may be reliant on export interest to the continent before harvest begins there, to allow a last spike in prices.

Prices are likely to remain volatile in the short term as currency moves in tune with Brexit concerns and there is still a weather market to consider in US. In theory, rapeseed prices are cheap compared to soya, but a fall in soya will no doubt cause rapeseed prices to fall as well.

 

Regards,

 

Owen

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