Soya stocks push OSR value down

By FWi staff

OILSEED rape values were driven lower this week on the back of US soyabean futures falling to a three-month low.

Although this years US soyabean crop was cut to 72.5 million tonnes, which was well below trade expectation, a downward revision of this seasons US exports, plus carry-over stocks at a 13-year high, more than offset the lower crop figure, noted the Home-Grown Cereals Authority in its weekly MI Oilseeds report.

The November US Department of Agriculture crop report released last week indicated high oilseed and oil supplies for the coming season and, unless South American and Australian yields suffer, stocks are unlikely to reduce for the rest of the season.

UK rapeseed is currently trading at £115/t delivered or £105.50/t ex-farm, down more than £3 in recent weeks. This compares with about £170/t in 1998.

The possibility of prices returning to 1998s levels remains bleak, with vegetable oil markets depressed.

“Increasing Malaysian palm-oil stocks and accumulating Rotterdam rape-oil stocks, amid slowing Indian demand and absent Chinese import quotas, have hindered a recovery in prices,” noted the HGCA.

“The slow pace of exports is reflected in 112,000 tonnes of rape-oil stocks reported at Rotterdam bonded warehouse as at 1 November, compared to 24,000 tonnes a year earlier.”