Oilseed business mixed worldwide – HGCA

CHICAGO soyabean and meal futures ended the week firmer, with meal showing the highest gains.

Larger than expected US soyameal exports and domestic demand (due to an increase in the US poultry and broiler population) helped to push meal prices $5/t higher, while soya oil prices were $8/t lower.

These very different price movements from week to week highlight a mixed market outlook.

On the one hand, demand for soyabeans is expected to rise.

On the other, market pressure remains from an advancing South African soyabean harvest and concern over the future of US exports due to falling equity markets and the US/China spy plane dispute.

UK rapeseed up

UK rapeseed prices rose by a further 2.25-3.35/t last week. Current spot delivered Liverpool prices are at over 143, commanding a 2 premium over Erith values.

Trade sources suggested that the arrival of Australian canola has helped to limit the short supply, but actual delivery is believed smaller than expected.

International: Concern over palm oil

PALM oil futures were little changed from last week, as bulls and bears kept in balance.

Concern over a further delay in burning crude palm oil as fuel and rumours that the Malaysian government would devalue the Ringgit had a negative effect on prices.

However, a private Malyasian crop report, putting end-March palm oil stocks at 1.25m tonnes (1.49m end-February), March exports 20% higher at 965,000 tonnes and production 4.5% lower, offset most of the earlier bearish news.

Malaysian May palm oil futures have risen some $30/t since the beginning of 2001.


Taken from HGCA weekly MI Oilseeds
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