Oilseed rape prices have slumped further over the past week, with spot values losing £12/t to around £268/t ex-farm, depending on location. New crop markets have also dropped, with harvest values in a range of £240-255/t compared with £254-263 last week.
EU rapeseed production could reach 22m tonnes, with the French harvest almost ready to begin. In the US, 78% of the soya bean crop had been sown against the five-year average of 70%, while Canadian canola plantings were also proceeding at a pace.
“The weather for the next four to five months will dictate the final production outcomes,” said Bidwells consultant Jonathan Armitage. However, the El Nino weather phenomenon should benefit northern hemisphere weather patterns. And as South American growers looked to new crop plantings, attractive soya prices compared to corn could incentivise even greater soya bean acreages, he added.
Wheat harvest was now under way in America, and was 16% complete in Texas, according to a report by analyst Agritel. Dragged down by weakening corn markets, Chicago wheat futures had dropped for 10 successive trading days. UK old crop values remained relatively unchanged on the week, but new crop prices fell by about £4/t, to around £130/t ex-farm for harvest movement.