The UK oilseed rape area is likely to increase by 10-15% this autumn, experts predict
The UK oilseed rape area is likely to increase by around 10-15% this autumn, according to experts at the Cereals Event (14 June 2006).
Forward prices of £160/t for this harvest and around £170/t for November delivery are supporting this predicted growth in area, explained United Oilseed’s Graeme Leslie.
“Markets are definitely looking a lot more buoyant – much of this is due to growing demand for biofuels putting a floor in the market and there is also more awareness of hydrogenated oils, which is fuelling demand for healthier oils.”
Gleadell’s Jonathan Lane expects the oilseed rape area to increase by 7-10% this autumn, pointing to increasing crush capacity across the EU fuelling the market.
But he warns there may be clouds on the horizon, such as the potential threat from cheaper Canadian Canola and tighter crusher margins, which may slow future growth in crush capacity and limit future market growth.
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