By FWi staff
CHICAGO soya complex futures prices soared last week under the lead of soyameal prices and soyabean export business to China.
Soyameal futures rose to five-month highs on Friday, as the French and Italian ban on the use of meat and bonemeal in animal feed lent hope of increased European demand for soyameal from the USA.
MATIF rapeseed futures rose by between E4-4.50/t, gaining additional support from a stronger US Dollar against the Euro.
The possibility of increased usage of domestically produced oil meals led to renewed concerns about a tight oilseed supply situation later in the season, considering the lower EU crop this year.
This all helped to increase trading activity on European markets, in general improving on the recent negative market sentiment.
With the UK rapeseed market very much in line with the MATIF futures exchange, delivered UK rapeseed prices were also higher last week, rising by 75p-2/t.
FRANCE banned the use of meat and bonemeal in animal feed on Tuesday (14 November), reacting to concern about BSE and its links to the human disease vCJD.
With Italy following the French example on Friday, other member states are also expected to follow.
The ban will increase the need to import soyameal as a protein substitute.
Trade sources estimate that an EU-wide ban could create an additional demand of 2.5-3m tonnes of soyameal per annum.
Likely suppliers are the USA, Brazil and Argentina, as they are the worlds top soyabean producers.
However, the EU GM concern may limit soyameal intake from, in particular, the USA and Argentina.
THE Argentine agricultural ministry forecast the 2000/01 planted soyabean area at a record of 9.9m ha, well above the 8.74m ha in 1999/00, while the area devoted to sunflower seeds is expected to decrease by 30% from 3.6m ha last season.
India has imported a record 4.75m tonnes of vegetable oil in 1999/00 (Nov/Oct) compared with 4.6m tonnes in the previous season, of which 50% was palm olein.
The Malaysian government will allow the export of 1m tonnes of crude palm oil duty free next year.
- US$1 = 70.17p, 1 = US$1.425;
- 1 = 59.55p, 1 = 1.679
at time of writing
Taken from HGCA weekly MI Oilseeds
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