UK oilseed rape prices fell almost £2/t in the week to Wednesday (11 November), to a spot average of £252.70/t ex-farm after the US Department of Agriculture (USDA) raised its global estimates.
Global rapeseed production was estimated to be 67.1m tonnes – higher than previously estimated due to increases in Canada, which were only partly offset by reductions in Australia, Pakistan and Russia.
However, global oilseed ending stocks were projected to be 94.1m tonnes, down 2.2m tonnes from October, which should provide slight relief for the market.
The strong pound also continued to weigh heavily on UK rapeseed prices, said AHDB Cereals and Oilseeds.
The US soya bean yield was surprisingly high considering the growing season, which resulted in the Chicago futures falling sharply on Tuesday, with Matif futures following suit.
Malaysian palm oil stocks were adding pressure to the market, having increased to the highest level in 15 years at the end of October, said a report by AHDB Cereals and Oilseeds.
Early estimates suggested the 2016-17 EU rapeseed area could reach 6.47m ha, up slightly from 6.43m ha in 2015-16, according to the latest report by Stategie Grains.
“Plantings are forecast to increase in Eastern Europe, including Hungary (+10%) and the Czech Republic (+2%), which is predicted to offset the decline in area for larger producing countries, including the UK and Poland.”