Continental rape price forces crushers to look elsewhere

By FWi staff

HIGH oilseed rape prices on the Continent are forcing UK crushers to look elsewhere to secure supplies.

Imports of oilseed rape from mainland Europe into the UK are being restricted by the EU farmers who are reluctant to sell.

According to the Home-Grown Cereals Authority, UK rape is currently trading at £150/t. Rapeseed in France is selling for the equivalent of £150/t and supplies in Germany are making £155/t.

With the supply shortages and weaker oil prices, crushers are reportedly looking elsewhere for their seed. Pressure is mounting on margins and shipments are said to be booked from Third Countries, including Poland and Australia.

But shipments will have a negligible effect on the UK market, said Martin Farrow of United Oilseeds, Wiltshire.

“It is traditional to have shipments from Poland, and although Australia is a new source, deliveries are not expected to enter the UK until the next quarter,” he said.

The reluctance of producers to sell their seed is purely price-driven, Mr Farrow added. Prices are unlikely to fall much further and farmers with storage capacity are holding on to rapeseed in the hope that values will rise.