By FWi staff
MARKET signals were mixed last week, but fundamentals are very much the same. Chicago soya futures prices remain under pressure from a proceeding harvest (over 84% complete) and a strong US Dollar against the Euro.
As the Dollar rallied to record highs against the Euro, making EU supplies more competitive on world markets, MATIF rapeseed futures gained a further 1.50 last week.
However, the higher seed prices and very low oil prices continue to weaken crush margins.
The closure of a Dutch oilseed crushing plant (the third within a month after the indefinite closure of a German and French plant) highlights the difficulties crushers, the main buyers of our domestic rapeseed, are currently facing.
UK delivered rapeseed values continued to slide last week by 50p/t amid another quiet trading week, following Chicago prices lower.
In contrast, linseed prices rose by 3/t, as this years sharply lower crop has already tightened supplies.
Malaysian palm oil prices recovered to the highest level in three weeks on bullish export data.
However, this was in part due to the governments decision to allow certain companies to export crude palm oil without an export duty.
Stocks remain high, and with production estimated to rise by 7.5% (from 10.65 million tonnes in 2000 to 11.45m in 2001), the bearish outlook for palm oil remains.
Competition from neighbouring Indonesia, where the devaluation of the Rupiah has increased the competitiveness of Indonesian palm oil, has added to the pressure on Malaysian palm oil.
A significant recovery is not yet in sight.
- US$1 = 68.54p, 1 = US$1.459 at time of writing.
Taken from HGCA weekly MI Oilseeds
To contact the HGCA phone 020 7520 3972
Click here to visit the Home-Grown Cereals Authority