Rapeseed prices fall on back of economic woes

Oilseed rape prices have slipped by up to £10/t over the last week, although this varies widely between regions. Price movements have been influenced mainly by global economic factors such as currency and oil prices, say traders.

Grain and oilseed markets took heart from the “progress” made on the EU/Greek debt agreement late last week only to fall again over the last few days as the wrangling over the Eurozone’s future continues.

The spot oilseed rape price ranged from £348/t ex-farm to £355/t on Wednesday (2 November).

“If crude oil is down and share prices are down then you can bet that oilseed rape will be down too,” said Simon Ingle at Openfield.

Canada’s harvest is almost complete and a despite a record oilseed rape crop, stocks will be lower at the end of the current season than last year.

“Canada will act as a source of needed imports into EU and prices have already begun to reflect this,” said a recent HGCA report. “For all major grains and oilseeds, 2011-12 domestic ending stocks are forecast lower highlighting the strong demand for Canadian exports and the need for an undisrupted 2012 growing season to prevent further stock drawdown.”