Oilseed markets remain uncertain

Prices on oilseed markets were little changed to slightly firmer last week as in particular vegetable oil recovered from previous price lows. This was despite bearish market fundamentals.

The Chicago soyabean futures complex remains under pressure from forecast beneficial crop weather.

Vegetable oil price rises continue to be limited by higher output (palm oil) and high stocks. Trade activity was subdued on uncertainty over possible tax changes in main oil consuming countries.

EU cash rapeseed found few buyers last week as unfavourable crush margins and high Rotterdam rape oil stocks (0.118M) kept most crushers side-lined.

More interest was seen for new crop positions, since a lower expected EU crop and Chinese buying (reportedly so far 0.2M) promises reduced rapeseed availability in 2000/01.

EU farmers can destroy their GM contaminated rapeseed crops before flowering and/or before June 30 without forfeiting the area aid payment.