Old-crop oilseeds firmer – HGCA

OLD-CROP CBOT soyabeans and EU rapeseed markets were higher last week, as lack of sellers and tight supply influenced the markets respectively.

CBOT soyabeans closed up over $2, MATIF rapeseed E3.50, and UK delivered rapeseed 1.50.

On the new crop, concern over the quality and quantity of the forthcoming harvest is supporting harvest prices in Europe, while abundant soyabean supply and large US plantings are depressing CBOT futures.

EU farmers call for oilseed support

FARMERS in the EU, and particularly in France, are calling for support to the EU oilseed sector in response to US subsidy policies.

While EU oilseed areas have been declining recently, US areas have seen massive increases.

This is a result of EU oilseed payments declining under Agenda 2000 to around 30% of the oilseed price, while in the USA it is significantly higher and rising.

A new group called the European Oilseed Alliance (made up of EU oilseed associations) is looking into this.

International: USDA report negative

LAST Thursday (10 May) saw the monthly US Dapartment of Agriculture report for May released, which was within trade expectations.

World soyabean production for 2000/01 was placed at 171.45m tonnes, with the USA producing 75.38m tonnes, Brazil 36.5m tonnes and Argentina 26m tonnes.

For 2001/02, US soyabean production is forecast at 81.2m tonnes, some 8% higher than 2000/01.

On the soya oil, the report places US 2001/02 exports up some 21% from this season.

This figure comes from the anticipated reduction in high-oil content oilseed production (rapeseed), and due to a possible palm oil output slowdown.

Malaysia signs deal with India

A DEAL has finally been struck involving India building a $1.5 billion railway project in Malaysia in return for Malaysias palm oil.

Meanwhile, data from a private forecaster showed that Malaysian palm oil output rose 2.5% in April, while exports fell.

This resulted in palm oil prices falling some $6-$9 over the week.

Sunflower seed area down

BULGARIAS sunflower seed planting is expected to fall some 30-55% this season due to farmers preferring to plant more profitable and drought-resistant crops.

Estimates place the area at 0.35-0.4m hectares.