Chicago soya futures down – HGCA

CHICAGO soya futures rose earlier in the week on weather concern over the South American soyabean crop and sharp price gains for palm oil.

However, with the weather worries subsiding towards the end of the week and projections for record US soyabean plantings this spring, Chicago soyabeans closed sharply lower on Friday.

The firmer oil prices and a stronger US Dollar versus the Pound and the Euro helped European prices, pushing MATIF rapeseed up to 5 and UK prices up to 3 higher.

Soya supply worries dominate

SUPPLY concern has dominated markets recently. Record soyabean crops, in the making in South America and now projected for the US, have brought new soyabean contract lows.

Forecast lower softseed crops (sunseeds in Argentina, rape seed in Australia, India and possibly in the EU) have had little impact so far.

However, with the new supply restricting palm oil measures announced, global oil supplies could become less burdensome next season, providing price support.

International: Futures recover as Malaysian cuts palm oil

LOWER production forecast and news about possible measures to stop prices from sliding further helped futures to recover from last weeks lows.

Malaysian measures to curb supplies include the cutting-down of old oil palm trees and reports that the government is planning to encourage the use of palm oil in the industrial sector.

Also, a broad deal between Malaysia and Indonesia (the worlds biggest palm oil producers) to lift current low prices was reportedly agreed, including the harmonisation of export tariffs. The deal was regarded as supportive to the market.

USA raises planting area forecast

IN its first projection for the 2001-2 US soyabean crop, the US Department of Agriculture forecast a record area of 30.4-30.6m ha, up from 30.2m ha planted last year.

Australian farmers are expected to plant 1-12% less canola for harvest 2002 than last (1.34m ha). This is partly because of disappointing yields, which have reduced this years crop to 1.66m tonnes compared with 2.43m last year.

India is expected to harvest less oilseed this season. A total of 18.6m tonnes is projected (20.9m last year), mainly due to lower rapeseed, mustard and soyabean crops.