Weather & strong US$ remain supportive

MARKET signals were mixed last week. Chicago soyabean futures markets continued to gain support from dry weather conditions in the US soyabean growing region for most of the week, while bearish vegetable oil markets continue to weigh on markets.

EU rapeseed markets remained firm, aided again by a strong US dollar against
the euro/pound. This has also made imported soyameal more expensive, rising by between $6-9/t last week. In contrast, EU cash rape oil prices eased despite some business to North Africa, as Rotterdam stocks remain unusually high.

More rapeseed than usual has been shipped to England, as short supply and a strong pound limits exports.

The English June census data showed that a total of 299,200ha were sown to food rapeseed in England for harvest 2000. This compares with 363,400ha in the previous year. While winter rapeseed plantings fell by over 22%, spring rapeseed rose from a low of 17,000ha to 29,200ha.