USDA bearish on oilseeds, reports HGCA

ALL prices were lower last week, as the US Department of Agriculture supply and demand report was more bearish than anticipated and far more than needed palm oil supplies are currently available.

New record price lows were achieved for soyabean futures. Palm oil prices fell a further $9 to $10, falling to below $200/t for nearby positions.

Thus, despite a weaker Euro and Pound against the US Dollar, European rapeseed prices weakened last week, with MATIF 1-2 and UK delivered prices 50p-2/t lower.

Demand key to rapeseed

THE impending arrival of Australian canola to North European ports, and remaining EU domestic rapeseed is adding to supplies.

However, by now markets should have factored in the supply signals, which have depressed prices over the past weeks.

What will happen next will very much depend on demand, which is by many expected to turn out higher than currently estimated.

EU chews the fat

THE decision on animal fat use in EU feed has been postponed by the Commission.

International: Fierce soya export competition ahead

THE latest USDA supply and demand report pushed Chicago soya futures to new record lows last week.

The USDA revised US soyabean exports lower from 26.5m to 26.1m and closing stocks subsequently higher.

The lower export number surprised market participants, as China continues to purchase US soyabean. The new S&D also revised South American crops, where higher than anticipated plantings and yields are promising record crops this year.

Hence, fierce competition on export markets is expected for the remainder of this season.

Malaysia palm-oil revised upward

MALAYSIAN palm oil end-January stocks were revised higher at 1.5m tonnes last week, reflecting burdensome stocks and slow exports.

To further add to the bearish market feel, Indonesia will reportedly cut its crude palm oil export tax from 5% to 3% as of 01 March. This should increase competition for Malaysian palm oil to a certain extent.

Ukraine sunflower planting down?

A LOWER area is expected to be planted to sunflowerseeds this spring, according to the Ministry. Estimates range between 2-2.1m ha, compared with 2.9m ha last year.