ONCE again, old-crop Chicago soyabean and meal futures ended the week down, with some new contract lows set. Soya oil however, remained firm, despite a weaker palm oil market.
Improved US export prospects and the surprising 23% reduction in Canadian canola plantings pushed soya oil futures higher last week.
The outlook for a further squeeze of the global softseed supply next season helped MATIF rapeseed futures. EU rapeseed improved by 3-4/t last week.
UK delivered prices remain firm
UK delivered prices followed suit with spot prices up as much as 1.25 last week. New crop delivered Erith rapeseed is currently trading at 137.50/t, some 17 higher than last year for the corresponding period.
UK processors reject soya on GM grounds
SUPERMARKETS in the UK continue to look for GM-free products, resulting in some UK processors no longer using soya oil. This is despite soya oil trading at a considerable discount to rape oil.
International: Canadian canola plantings sharply down
CANADIAN farmers are expected to plant just 3.75m ha of canola (-23%) this year, in response to high input costs, low returns and dry weather conditions according to Statistics Canada.
This would be the lowest area since 1996 with output currently forecast at 5.5m tonnes (7.1m last year).
Despite relatively high carry-over stocks of 1.15m tonnes, total supply is expected to fall by 1.96m next season.
With rapeseed production estimated lower in other main producing countries, global rapeseed availability may turn tighter in 2001/02, so supporting prices.
Weather influences global soya market
DESPITE some rain last week in South America, few harvest disruptions were seen, with the Argentine soya harvest currently 31% complete, and Brazil 85%.
Some analysts are placing the Argentine crop at 26m tonnes, and the Brazilian crop at 36.3m tonnes.
In the USA, the weather is becoming the dominant market factor as plantings begin.
EU extends meat-and-bonemeal ban
THE EU decided to extend the MBM ban past the end of June. No end date has yet been given.
This provided some price support to Chicago soyameal last week.
Taken from HGCA weekly MI Oilseeds