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MARKET DEVELOPMENT
GERMAN RAPESEED MARKET SUPPORTED BY EXPORT HOPES
calendar23-08-2002 | linkNULL | Share This Post:

HAMBURG, Aug 22 (Reuters) - Germany's rapeseed prices are beingsupported by hopes of more export deals while domestic consumers aremoving in and out of the market generating good business on individualdays, traders said on Thursday."There were rumours in the German market this week that Mexico wasseeking more German rapeseed but nothing seems to have come of it yet andit remains a rumour," one trader said.In early August a major French export house sold 24,000 tonnes ofGerman rapeseed to Mexico.This was loaded this week onto a ship in the east German port ofRostock for shipment to Veracruz in Mexico, traders said.Lower rapeseed/canola output in Canada and plus an expected reductionin the U.S. soybean crop has increased international purchase interest inEuropean rapeseed.Traders said Germany's market has seen start-stop business so far thisweek with buyers moving in to take advantage of dips in prices caused byweaker prices for Chicago Board of Trade soybean levels."German mills are currently relatively subdued in their purchases, butthey have been dipping in and out of the market," one trader commented."There have been a couple of days with brisk business levels.""German mills still have a substantial supply requirement but areawaiting price developments and they are concerned about uncertain futurerape oil demand," a trader said.Purchases by producers of bio diesel vehicle fuel from rapeseed havealso been low with bio diesel sales said to remain weak.First talks about advanced sales of Germany's 2003 rapeseed crop alsotook place this week.This year's German rapeseed crop is set to fall to around 4 milliontonnes against 4.2 million tonnes but traders said the market has come toterms with this and priced it in.Rapeseed for delivery in Hamburg in August was on Thursday quoted at260 euros, up about 14 euros on the week.