Oilseed support from MBM ban

  • MBM ban supports oilseed prices…

    The meat and bonemeal ban in parts of Europe and possibly throughout the Union continues to provide significant price support.

    Although more trading activity has been reported, volumes remain small and most of the recent price rises stem from uncertainty over how much more vegetable oil meal will be needed this season.

    Reports about a much smaller-than-anticipated Argentine sunflower seed crop, following wet weather conditions, is likely to further reduce this years lower global softseed availability.

    This and the continued strength of the US Dollar against the Euro and the Pound provided additional price support.

    Under the lead of Chicago soyameal, which rose by US$11-12, MATIF rapeseed gained Euro4-5 and UK delivered prices 1.50-3/t.

  • …Australian canola rumours damp them down

    Seed price rises were, however, limited by unconfirmed talks about purchases of Australian canola, which should arrive in the EU early next year, and a less robust vegetable oil market.

  • US stocks weaken soya

    The Chicago soya futures markets saw further sharp gains for soyameal last week.

    Soyabean futures also continued to improve, as increased EU export demand is expected for US soyameal and soyabeans this season in addition to demand from Asian countries.

    However, increased US soyabean crushings will mean higher US soya oil stocks, adding to ample domestic supplies.

    Soya oil remains the weakest of the soya complex.

  • Floods hit Australia

    The current crop estimate of 1.7 million tonnes remains uncertain, as flooding in the northern NSW may lower output (2.4m previously).

  • India raises import duty

    As expected, India raised its import duty on edible oils in an attempt to curb the flow of imports and to protect the domestic crushing industry.

    The duty on refined palm oil and RBD palm olein was raised to 65% from 53%, the duty on other refined oils was raised to 45% from 35%.

    The rise was less than expected and hence had only a limited effect on prices.

    However, some concern remains about a possible slowdown in Malaysian palm oil exports to India, the biggest buyer of Malaysian palm oil last year.

    Palm oil prices were firm last week, as floods caused by monsoon rains raised fear about the Malaysian palm oil crop.

  • US$1 = 70.97p, 1 = US$1.409;
  • Euro1 = 59.66p, 1 = Euro1.676
    at time of writing


Taken from HGCA weekly MI Oilseeds
To contact the HGCA phone 020 7520 3972

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