Oilseed rape prices have jumped by more than £5/t over the past week, as harvest pressure subsides and farmer selling grinds to a halt.
As Farmers Weekly went to press on Wednesday, spot rapeseed values were pegged at just over £230/t ex-farm, depending on location. That was their highest level since 9 July, and £10/t higher than the trough reached on 23 July.
More market prices and trends“Now harvest is almost finished, movement pressure has eased,” said Owen Cligg, trading manager at United Oilseeds. “Prices are low and farmers don’t want to sell now, so mills are having to pay up to secure new deliveries.”
However, the supply and demand fundamentals had not changed. “Oil World has forecast EU production of more than 23m tonnes, with good yields in France and Germany, and higher production in Bulgaria and Romania,” said Mr Cligg.
Fortunately, EU exports were now under way to third countries such as Canada and Mexico, which – while unusual – would provide welcome relief to the markets, he added.
“The EU has some of the cheapest oilseed rape in the world, including Canada and Australia, so there is room for prices to rise, as long as soya markets don’t continue to fall.”