French new crop rapeseed prices tumbled further on Thursday after a sharp fall in Malaysian palm oil futures and the dollar's drop against the euro, traders said.
By 1425 GMT Euronext rapeseed futures were down between 5.00 and 10.00 euros with old crop June off 10 euros.
August, the first new crop contract, was down 5.25 euros at 232.50 euros a tonne, down almost 25 in three weeks.
"The market has been impressed by the particularly sharp drop in palm oil," a trader said. "And there is also the drop of the dollar, a lack of rapeseed exports news and only few buyers."
Malaysian crude palm oil futures closed at their lowest in more than seven months on Thursday as players were unnerved by fears of more cancellations of cargoes by China and low exports.
The rapeseed market was also hit by a sharp drop by the dollar against the euro.
"Exports are crucial. If we don't see important exports early in the season we could reach 220 euros (a tonne on the August contract)," another trader said.
Traders said European rapeseed exports were still very low so far while the bloc still expected a big crop.
Comments
Comments are closed.