Prices of most oilseeds, oils and oilmeals continued to rally in the second half of December 2007

Futures markets are vulnerable to a technical downward correction

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  • New price highs in early 2008. Futures markets are vulnerable to a technical downward correction. However, price setback in the futures and cash markets should be limited as long as stocks of oilseeds and vegetable oils are so low…
  • Driven by strong demand for biofuels, EU crushings of rapeseed were boosted by 13% to a new high of 4.8 Mn T in Oct/Dec 2007. As a result, total EU rapeseed stocks were reduced to about 9.9 Mn T as of end-Dec 2007, up by only 0.5 Mn T from a year earlier…
  • Cotton is likely to be among the losers in the prospective fierce competition for acreage in 2008/09. Prices of grains and major oilseeds have rallied much more sharply…
  • Rape oil prices have risen above the breakeven point for direct fuel use in Germany. Sharp decline in demand for refined rape oil as truck fuel…
  • Argentine soybean crop prospects have deteriorated. Crop stress may occur in Jan/Febr 2008 due to above-normal temperatures and insufficient rain. We consider it possible that this year’s Argentine soybean crop declines by 1.0 Mn T from the 48.0 Mn T produced in 2007…
  • Vegetable oil consumption started to suffer in the EU in the 2nd half of 2007 in the wake of skyrocketing prices and rising imports of biodiesel from non-EU countries…

(Cf. news of 2007-12-19.)

Source

Oil World, 2008-01-04.

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