Oilseed rape prices tumbled in the week to 21 June, falling £9.60/t on the previous week, to average £312.50/t ex-farm for spot delivery.
However, prices remained £58/t higher than the same week last year.
This decline was largely due to crude oil prices dropping to US$45 (£36) a barrel – pressurising global oilseed markets, said grain traders.
In European markets, Oil World has increased its 2017-18 EU rapeseed production forecast by 0.4m tonnes on its previous estimate, to 21.4m tonnes.
This increase followed improved output expectations in Germany and France, said a report by AHDB Cereals & Oilseeds. The EU Commission placed production at 21.9m tonnes, following an increase in both area and yield year-on-year.
Despite this, global rapeseed supplies are expected to remain tight due to lower production in Canada and Australia, said Oil World.
Australian canola output is expected to fall by 20% on the year to 3.32m tonnes, based on recent figures from the Australian Bureau of Agricultural and Resource Economics.
Although the area is forecast to increase by 13.8% year-on-year, yields are anticipated to return to usual levels (1.25t/ha based on current forecast) next season.