Oilseed rape report

OILSEED RAPE by Jonathan Lane. Telephone 01427 421222 or email jonathan.lane@gleadell.co.uk)

"The US Soya market has continued to come under pressure since last week, despite a bullish monthly USDA report, as investment money has been dragged out of the market in the panic that has surrounded the collapse of two major investment banks and the near collapse of the world"e;s largest insurance company," said Jonathan Lane, Gleadell oilseed rape trader.

"The USDA"e;s Crop Production and Supply & Demand Reports pegged the US soybean yield at 40 bushels per acre down from 40.5 bushels per acre on the August report. This was the low end of trade estimates and it lowered the US soybean crop to 2.934 billion bushels compared with 2.973 billion bushels last month and 2.585 billion bushels last year. Ending stocks were left unchanged at 135 million bushels while beginning stocks were raised 5 million to 140 million bushels.

"Rapeseed prices tried to rally on the back of the USDA report, but quickly got hit as crude oil slumped to a six month low as Hurricane Ike passed by the US oil fields without causing any notable damage. The crisis in the US and global banking sectors re-enforces the world economies worries and about the perceived demand for crude oil. Crude oil prices look like they will remain under pressure in the short term and, until this changes, the rapeseed market will struggle to recover." Mr Lane added.