By FWi staff
MARKET analysts are blaming last months nuclear tests by India and Pakistan for a drop in UK oilseed prices.
Pakistan is a major buyer of palm oil and pays for most of its supplies in US dollars.
But traders fear that it could face difficulty finding enough money. The Pakistan Government suspended foreign currency transactions following international condemnation of its five nuclear tests.
Demand from Pakistan for palm oil has also been placed in “some doubt” following the threat of trade embargoes from countries opposed to the nuclear tests, warns Gerald Mason of the London-based Home-Grown Cereals Authority.
This could force suppliers in the Far East look further afield for outlets, and send large volumes of palm oil on to the world market, putting downward pressure on UK oilseed prices, he says.
New-crop oilseed rape was trading at £160/ tonne three weeks ago. But in recent days, prices have fallen below £150/ tonne.
Old-crop rape has also fallen in value. As the markets opened this morning, ex-farm supplies were trading at £185/ tonne, a drop of about £4/ tonne on three weeks ago.