Oilseed rape prices have continued to climb due to disappointing yields, gaining £7.70/t to average £303.20/t ex-farm in the week to 17 August. Spot demand and spot shorts also caused values to rally as traders sought to meet contracts.
In addition DRV, which represents German co-operatives, cut its estimate of German rapeseed production by 10.9%, year-on-year, to 4.46m tonnes.
See also: Top 5 yielding OSR varieties
Paris rapeseed futures gained more than €6/t (£5.20/t) on Monday (15 August) to reach a three-month high of €375.75/t (£325.74/t), due to gains in the soya bean market and strong US export demand, said a report by AHDB Cereals and Oilseeds. With the value of the pound falling to a three-year low against the euro, this meant that, in sterling terms, Paris rapeseed futures were at the highest level for the nearby contract since April 2014, it added.
The USDA had boosted its forecast of US soya bean exports for 2015-16 by 2.3m tonnes, and its 2016-17 estimate by 0.8m tonnes. This reflected the strong export sale announcements over recent weeks, particularly to major importer China, said the report. The market was further supported by strong soy oil markets, which rallied last week.