By FWi staff
THE EU ban on meat and bone meal (MBM) in all animal feed rations was finally agreed last Monday (04 December).
However, unlike in France and Germany, fishmeal is still allowed in pig and poultry feeds, as is animal fat in all rations.
The Commission also intends to look into changing the rules for protein-rich crops like peas, beans, lucerne and soyabeans.
The ban had little effect on markets, although the non-inclusion of animal fats pushed vegetable oil prices lower.
Markets have quietened down since the MBM ban hike, with MATIF rapeseed and Chicago soyameal prices lower for the first time since mid-November.
Crush margins have improved due to the higher meal prices, but gains remain limited following lower vegetable oil and firmer seed prices.
However, given scarce domestic oilseed supplies and higher import requirements for the EUs protein needs, the bullish market sentiment remains.
Vegetable oil remains the weakest in the oilseed complex markets, with palm oil futures losing $7/t last week.
High stocks and the EUs decision not to include animal fats in the ban dashed hopes of an immediate surge in vegetable oil demand and thus prices.
Although the recent soyabean price rises have slowed the pace of Chinese buying activity, China has remained the main buyer of mainly US but increasingly South American soyabeans.
According to USDA data, China has purchased over 1.7 million tonnes since 1 September from the USA.
Following drought conditions mainly in Western Australia, ABARE cut its forecast for the 2000/01 crop to 1.61m tonnes, compared to 1.81m in September and 2.43m last year.
This will cut export availability of Australian canola, the only other source of GM-free rapeseed after the EU.
Statistics Canada revised this years crop higher at 7.1m tonnes, compared to 6.9m earlier. Yields turned out higher than expected, but the 2000 crop remains well below last years 8.8m.
Despite this, exports are forecast to reach a record of over 4m, due to a carry-over of over 2m tonnes.
Taken from HGCA weekly MI Oilseeds|
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