Market signs remain mixed

By FWi Staff

CHICAGO soyabean prices rose early in the week on slow farm and fund selling activity, triggered by dry weather outlook and thus prospects for lower yields.

This helped to keep soya oil futures firm despite pressure from disappointing weekly US oil export data and weaker palm oil prices.

European markets continued to trade largely independent from Chicago. MATIF lost 1 euro last week for the first time since early July, indicating that the lower EU crop has now been priced in.

Only small volumes are currently offered on EU markets. Seed demand by crushers remains limited by low margins, which are hampered by lack of rape oil demand.

In the UK delivered rapeseed prices improved by between 50p and 1/t, aided by a weaker Pound against the US Dollar.

Meanwhile, Scotland has overshot its new single base area. This has been provisionally put at 2.9% and is likely to reduce Scottish area aid payments by 8-9/ha. The 2000 harvest is the first to see a single base area.