Oilseed rape markets have soared by £11/t in the past week, to reach a high not seen since June last year. Spot values topped £322/t ex-farm on Wednesday (12 March), depending on location; a jump of £30/t in the past month and almost £45 above the low reached in January.
This was despite a slightly bearish report from the US Department of Agriculture, which indicated that importers could cancel existing soya bean commitments in favour of cheaper South American supplies once it became available, according to a report by HGCA. However, the USDA also cut its estimate of Brazilian soya bean production by 1.5m tonnes, to 88.5m tonnes, due to unfavourable growing conditions.
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Dry weather in the USA was supporting global wheat values, alongside ongoing political concerns in Ukraine. UK feed wheat prices have firmed by more than £11/t during the past month, to about £161/t ex-farm. And the milling wheat premium has widened from about £21/t over feed last week, to £27/t on Wednesday.
“Export demand for both US and EU wheat has been rapid so far this season,” said the HGCA report. This had eroded US stocks, which would affect the global supply security the US had provided in recent years.