CHICAGO soya markets continued to fall last week on bearish supply data, ignoring encouraging export news.
This had a negative impact on European markets, with UK delivered values falling by 2/t.
MATIF rapeseed, however, recovered by 1.75-2.50/t over the week, as a stronger US Dollar v the Euro improved Europes competitiveness.
Rapemeal continues to follow soyameal lower. UK rapemeal has lost 10 since its MBM ban-inspired peak mid-December.
UK rape crop down
THE 2000 UK rapeseed crop reached 1.129 million tonnes, compared with the 1999 record of 1.7m tonnes.
This was due to lower average yields of 2.8t/ha and a 25% reduction in total area.
- More details at www.maff.gov.uk
UK crop update
Strategie Grains forecast the EU oilseed area 260,000ha higher, at 4.76 million ha, for harvest 2001. Sunflowers are expected to account for most of the rise.
International: China keeps buying
CHINA remained present on the world market last week, buying significant quantities of US and South American soyabeans and, for the first time this year, Canadian and Australian canola.
Despite this, prices continued to fall, with Chicago soya oil reaching new contract lows on Friday. Bullish demand factors are currently outweighed by bearish supply fundamentals.
Markets continue to concentrate on the ongoing surplus in global vegetable oils, early forecast of another increase in the US soyabean area for harvest 2001 and an advancing South American soyabean crop.
South America set for record crop
THE South American soyabean crop is developing amid nearly ideal conditions.
In Brazil, harvesting of the early planted beans has started, while some 70% of the crop is in either flowering or bean setting stage.
Brazil and Argentina are both set to harvest record crops this year. Most of the additional quantities are expected to be absorbed by China and the EU.
Indonesia to end palm oil tax
THE 5% export tax on Indonesian crude palm oil will be abolished. The regulation should take effect by 1 February, but has to be approved by parliament.
Taken from HGCA weekly MI Oilseeds