Rapemeal Rumblings

Posted by Nogger - a legend in his own mind at 12:05 | Categorized as

19/03/12 -- How tight is the nearby rapemeal market? Despite the fact that we've been trading a fixing market in Erith for some considerable time, and that there have been no front month offers on the continent for about six weeks, anecdotal reports from the hauliers suggest that the normal seasonal queues to get in and out of these facilities are strangely absent this year.

May/Jul is shaping up to be an interesting period with consumers seemingly only lightly covered but with the crushers also having only minimal sales on. Who or what gives first?

The nearby tightness seems to be more a function of a reduced crush than rampant demand to me. Cutting back on throughput across the summer may also be an option for some crushers, but compounders will be pointing to very uncertain feed demand during the coming months too, even if rapemeal is competitively priced compared to soymeal.

Never easy is it?