EU Rapeseed-Crush margins tight despite lower prices

Thu Mar 22, 2012 3:03pm GMT

* Rapeseed down 11 euros this week

* Tight supplies to weigh on prices until new crop arrives

* Strong export demand for UK rapeseed, Germany major market

AMSTERDAM, March 22 (Reuters) - Rapeseed prices in the European Union came off nine months-highs this week, but crushing margins remained low as tight supplies and high crude oil prices weighed on the market.

May rapeseed futures in Paris was down to 472.00 euros on Thursday after touching a peak of 483.25 euros a tonne on Friday, the highest for the front month since June 2011.

New crop contract August was at a support of 450.00 euros a tonne, down from 462.00 euros per tonne hit on Thursday last week.

"The price weakness is welcome but it does not change the fundamental situation much," one German trader said.

"Paris prices have risen by about 70 euros a tonne since early December but rapeoil prices have hardly changed since the start of this year. It is a very tough time for crushers."

Analysts and growers have released fresh warnings of serious damage to French winter crops due to frost early this year, particularly in the northeastern part of the country, and worries are now rising that the remaining plants could suffer if the current dry weather was to last.   Continued...

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