Oversupply worries hit oilseed futures – HGCA

CONCERN about oversupply, given the advancing South American soyabean crop, pushed Chicago soya futures lower again last week.

However, the largest price drop was again seen for palm oil which fell $12-14/t due to ample supplies.

Despite this, MATIF rapeseed futures rose by between 1.50-2.00, as a weaker US Dollar against the Euro provided price support.

With the Pound strengthening versus the US Dollar, UK delivered prices were 50p to 2 lower amid yet another quiet trading week.

French crop figures down

A FRENCH analyst lowered the 2000 EU rapeseed crop to 9.15m, and the crush to 8.75m tonnes. The changes reflect a fall in rapemeal demand.

Biodiesel grows in Europe

OILWORLD reported in its latest newsletter that EU biodiesel capacity is expanding sharply, in particular in Germany.

This should lead to demand and possible price rises for rape oil and rapeseed later in the season, considering that overall EU winter rapeseed plantings are lower this year.

International: Tough week for Chicago

CHICAGO futures markets had another tough week, with many soyabean contracts setting new lows, although losses were limited by gains on Friday.

Reports of global oversupply influenced the market. The falls come despite more exports of soyabeans and meal last week.

This means US soyabean exports for the season are above the level compared with last year, which seems to contradict the US Department of Agricultures prediction of lower annual
soyabean exports in 2000/01.

Forecasts of higher spring soyabean plantings also weighed on the market.

Higher estimate for Brazil

SPARKS, a US analyst firm, estimated the Brazilian soyabean crop at 36.5m tonnes, some 1m tonnes above the USDAs latest estimate.

With current weather conditions favourable in both Brazil and Argentina, South America may have a record export availability this season.

Ample supplies hit palm oil price

Malaysian palm oil data for January were released last week showing supplies higher than expected, resulting in some large price losses.

High stocks in “tropical” oils in recent months look likely to continue for the foreseeable future.