Rapeseed markets have taken a major fall this week with the May Matif rapeseed future falling from 400 euros last week to 381 euros today. Prices in sterling have fallen back to around £315.00 ex farm in England and prices would have dropped further were it not for a reduction in Sterling, currently £1=1.162 euros.
Fear seems to have set into many markets for now, as many consumers assume demand will be hit by the current coronavirus situation. Crude oil and vegetable oils have both been hit more than other markets as fuel demand is likely to be hit. Soyabeans have also fallen but they seem to be more resilient as impending tariffs are likely to be imposed on Argentine exports of soyabeans and soyameal.
Our view is that the downside has been overdone and if the coronavirus gets resolved other fundamentals should remain strong.
Regards,
Owen
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