EU oilseed markets down – HGCA

ALTHOUGH overall negative market sentiment has little changed since the beginning of the year, Chicago soya futures markets improved last week, with the sharpest price gains for soya oil.

This was because of Chinese purchases of US soyabeans, renewed prospects of increased meal and, possibly, oil demand from the EU and others.

However, with the US interest rate cut, the US Dollar weakened against the Euro and the Pound, leaving MATIF rapeseed futures 2-3 and UK delivered prices up to 3 lower.

BSE crisis to further lend support?

UNCERTAINTY over the impact of BSE in EU member states continues to spread mixed market signals.

While the “purchase for destruction” programme promises to reduce cattle numbers and thus demand, more countries are banning meat and bonemeal from feed.

This should increase global demand for soyameal and help to absorb large American soyabean crops.

An EU ban of animal fats in feed is being discussed and, if agreed, should boost demand for vegetable oils.

International: Hints of record US soya area

EARLY indications are that US farmers are planning to further increase the area devoted to soyabeans this spring, judging by current prices and soaring nitrogen fertiliser costs.

However, a proposed Bill suggesting a rise of the loan rate for wheat and maize, while leaving that for soyabeans unchanged, may change the preference to grains instead.

China keeps buying beans

UNCONFIRMED trade reports indicate that China bought 85,000-140,000 tonnes of US soyabeans last week.

Kerala earthquake hits meal exports

THE devastating earthquake in Kerala has damaged Indias busiest port, Kandla.

This may cause some Asian importers of Indian soyameal to turn to US shipments instead.

South American soya update

WEATHER continues to be conducive to crop development. Early-harvested Brazilian soyabeans indicate higher yields than expected.

Analysts put output at a record of 35-36 million tonnes, compared with 33m last year.

The Argentine crop is also projected to reach a record of 24-25m tonnes, up from 21m tonnes in 1999.