April 13, 2009
EU rapeseed futures up on strong US soy rally
EU's rapeseed futures were up after a shortened trading week, helped by a strong rally for US soy, but gains were modest as the market remained capped by weak fundamentals, analysts said on Friday (Apr 10).
Front-month May on Euronext inched up 0.36 percent on Thursday (Apr 9) to EUR280.25 per tonne, leaving the contract 1.56 percent higher over the week.
Analyst Sebastien Poncelet said the European rapeseed is struggling to find its own dynamic and it is mainly following both crude oil and world oilseed markets.
Poncelet added that Euronext prices may see greater volatility on Tuesday (Apr 14) with the expiry of options on the May contract.
Analysts said physical activity in Western Europe remained slow in view of ample supplies after heavy imports earlier in the season, and with biodiesel production in Germany still dampened by uncertainty over regulations.
US soy hit two-month highs above US$10 a bushel this week, driven by an expected five-year low in US stocks as hefty Chinese buying continued and projected output in South America declined further.
Analysts said the buffer to react to any supply interruptions or an increase in demand is low, however, most of the upside for soy is now priced in.
US$1 = EUR0.76 (Apr 13)
