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Prices fall on stronger sterling

Date Added: 11/11/2016

Trader's View, By Owen Cligg, Trading Manager, United Oilseeds

UK rapeseed prices have endured a roller coaster ride this week as the US election and USDA report have both impacted prices significantly.

Rapeseed prices have now retreated to a range of £330 to £340 ex farm depending on area, despite obvious difficulty in sourcing spot rape for the UK crush.

The surprise result in the US election has caused turbulence in the currency markets which has eventually seen the £ rise from 1.11 euros to 1.16 euros which has eroded UK sterling values. The USDA report increased soyabean yields which also caused prices to fall, but continued Chinese demand has met with at least two rallies this week which have in turn helped support matif rapeseed prices. 

The Chicago January soyabean has been trading both sides of $10 per bushel, but looks like it will end the week below this point. It will be interesting to see if the Trump administration introduce a more protectionist economic policy that may restrict soyabean supplies on to the world market.

 

Regards,

 

Owen

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