MBM ban keeps grip on oilseed markets
By FWi staff
MARKET implications of the expected meat and bonemeal (MBM) ban in parts of the EU and possibly throughout the whole of Europe continued mainly to keep meal markets on the rise this week.
UK feed ingredient meal prices have gained over 20/t since early November, with soyameal showing the steepest price rise.
The Commission then on Monday (04 December) confirmed a temporary six-month EU ban on MBM in all animal feeds starting from 1 January.
Uncertainty remains whether animal fats will also be banned in compound feeds throughout the EU. If so, additional demand for vegetable oils as a substitute can be expected.
This could bring a welcome boost to a market otherwise burdened by ample supplies.
A crop of 38,000 tonnes has been harvested this year in England and Wales on non-set-aside land, according to MAFF, compared with 290,000 tonnes last year.
Chicago soyameal futures continued to rise last week, reaching six-month highs on Thursday.
Soyameal futures prices have gained over $30/t during the last four weeks, on the expected additional demand from Europe in particular.
Strong weekly soyabean export sales with Europe, China and Taiwan as main destinations helped to push soyabean futures higher.
Soya oil gained support from stock reduction and the highest export sales since the beginning of the season.
Recent demand for US soya supplies confirms that this years record crop is seen as necessary rather than a burden to oilseed markets.
Although recent reports about the EU banning animal fats in mixed feeds have raised hopes that more palm oil may be needed in animal feed rations, the palm oil market remains burdened by abundant supplies.
This is particularly true since Indonesia is considering abolishing its export tax on palm oil in January.
This, and a weak local currency, could boost exports, posing severe competition to Malaysian palm oil sales.
Indonesia is the worlds second-largest palm oil producer, and is expected to produce 7.4m tonnes of palm oil next year, compared with 6.7m last year.
Malaysias crop totalled 10.5m tonnes in 99/00.
- US$1 = 68.87p, 1 = US$1.452;
1 = 61.37p, 1 = 1.629
at time of writing
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Taken from HGCA weekly MI Oilseeds To contact the HGCA phone 020 7520 3972 Click here to visit the Home-Grown Cereals Authority |
