OSR prices under pressure after crude oil values drop

Oilseed rape markets have come under pressure over the past week, with weaker crude oil values undermining the improvements made last week.

As of Wednesday 16 December, spot rapeseed was worth about £252/t ex-farm, depending on location, with new crop values pegged at about £245/t ex-farm for August/September movement.

In contrast, cereal values remained relatively unchanged, with another bearish USDA report offsetting the weaker pound.

However, severe drought in South Africa and Australia could provide support to 2016-17 markets as crops were already suffering irreversible damage, said traders.

Feed wheat was currently worth about £115/t ex-farm for November, depending on location, and although weather concerns had so far been factored into global prices, all eyes were now on developing crops.

See also: More on market prices

In the pulse sector, human consumption exports were slow and premiums had slipped to £15-£18/t, said Chris Collings, president of Bepa.

“Only the best produce is going to hold visual quality through the winter.”

With a low-quality French crop, imported feed beans could potentially undermine UK values, he added.

“The good news is that buyers for the feed sector remain enthusiastic and committed to the crop, meaning the UK crop has a ready local outlet for the stocks.”