With exports leaving east coast ports from Peterhead to Ipswich, oilseed rape prices are firm and traders reckon there is just 10% of 2011’s bumper crop left to sell ex farm.
Spot prices are firm in a tight market at £355 to £360/t ex-farm. “There is still good export demand. Maybe 600,000t of the 700,000 to 800,000 tonne surplus is committed for export,” said Owen Cligg of United Oilseeds.
Some traders think that the UK’s exportable surplus from the 2011 crop will be shipped by the end of February.
A more positive Chinese economic outlook has led to higher oilseed import forecasts.
According to analysts the weather in South America is expected to continue to play a large part in oilseed rape price trends over the coming weeks.
With global oilseeds stocks down and China expected to import 58.5m tonnes of soybeans in 2012, the world oilseeds market is also tight. Dry weather in south America is holding production back.
The prospect of Russia starting oilseed rape exports, a large Brazilian corn crop and a record Australian oilseed rape crop are negative market factors.
New crop oilseed rape is trading at about £330/t ex farm for harvest and while a few growers have hedged some of their crop, current price levels were not attracting many sellers, said Mr Cligg.