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USDA soya plantings bigger than expected

Date Added: 31/03/2017

By Owen Cligg, Trading Manager, United Oilseeds

UK rapeseed prices have remained subdued, as fears of increased soya acres have been justified by the latest USDA report released today, Friday 31st March. USDA reported an increase of intentions to plant soya of up by 7% on last year to 89.482 million acres.

Combined with an increased strength of sterling at £1 = €1.17 and the matif falling a further €3, old crop ex farm prices are now £330 ex farm at best. New crop harvest prices have dipped below £300 ex farm and may struggle to go back above those levels in the short term.

In theory, vegetable oil stocks remain tight and this may temper any further price falls. However, the Brazilian and Argentinian soy crops are getting bigger which only exacerbates the increased supply of soya, and these supplies will likely hang over the market.

On the positive side, the US has enjoyed four good harvests in a row, which is a rare event and any weather market should give an opportunity for increased prices.

 

Regards,

 

Owen

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