Crude oil hits 6 months lows
Continued concern over sluggish Chinese growth keeps commodity markets under pressure. Crude oil fell to its lowest in 6 months, knocked by fresh evidence of growing oversupply and data highlighting slowing demand in China, leaving crude prices set for their weakest 3rdquarter performance since 2008.
Soybean prices also fell, buffeted by good weather in the US Midwest and concerns over demand for domestic supplies of the crop. August is a critical month for soybean plants, and favourable growing conditions in late summer could help offset losses resulting from excess rain earlier in the season.
Meanwhile, the struggling stock market in China, a major importer of the oilseeds, has recently prompted worry over the Asian nation's appetite for US commodities such as soybeans.
US soybean conditions rose to 63% good or excellent, up 1% point from the prior week, according to the USDA.
Malaysian palm oil futures hit an 11 month low, as other vegetable oils traded lower and expectations of weak demand and higher output in the coming weeks weighed on prices.
Last Thursday the EU revised their rapeseed forecast down by 1MMT to 20.7MMT. See table below.
RSO paper was traded at €686 for the ASO period for small volume and at €691 and €692 for the NDJ strip, in a day typified by limited buying interest.
Posted on 03/08/2015
by Andrew Tetley