HGCA: Global oilseed markets lower worries
- HGCA MI Oilseeds
- Global oilseed markets lower
New contract lows were set for Chicago soyabean and soya oil futures last week, as pressure from a potential record South American crop and record US soyabean plantings continues.
The sharpest losses were seen for soya oil, losing $10-$11 over the week. Our domestic market followed the negative global sentiment with spot UK delivered rapeseed 1-2 lower.
On the French MATIF market, rapeseed futures ended the week E0.5-1.5 lower.
- EU MBM ban recommendation
EU agricultural ministers should be making a decision this week with respect to the EU MBM ban.
This follows a recommendation last week by the EU Commission for the MBM ban in animal feed to be extended after the 30 June deadline.
- EU soyabean imports to rise
Oil World has estimated EU soyabean imports at 16.15m tonnes in 00/01, up from the 14.7m tonnes last season. The rise in demand can be mainly attributed to the MBM ban.
- International market prices and commentary
- CBOT soya oil sharply lower
Fund selling activity sent Chicago soyabean futures to contract lows last Thursday (19 April).Harvest pressure from South America, and US weekly soyabean exports sharply lower than anticipated (at just 72,400 tonnes) were cited as the main reasons.
Oil remains the weakest of the soya complex, generally reacting to high US stocks and lower palm oil prices.
However, on the cash market, soyabean prices have remained firm due to tight
supplies forcing premiums higher.
Reports indicate that US crushers are struggling to purchase nearby soyabeans.
- South American harvest advances
The Brazilian harvest is 80% complete with the Ministry placing this years crop at 35.97m tonnes, some 11% higher than the 2000 crop.Meanwhile, Argentinas harvest is underway, despite rain induced delays.
Official estimates put this seasons crop at 25.5m tonnes, 0.5m tonnes
higher than previously projected, following high yields and a larger planted area. - Malaysian palm oil under pressure
Poor exports, competitively priced US soya oil and Indonesian palm oil resulted in Malaysian palm oil futures losing between $5-6 last week.
1 = 62.36p, 1 = 1.603 on 24 April
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Taken from HGCA weekly MI Bulletin
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