2 November 2001

Oilseed rape markets rise

OILSEED rape markets have leapt by almost £5/t in the past two weeks, boosted by stronger world oil prices.

Chicago soya oil futures had fallen by $113/t (£78/t) since mid-August as the US harvest progressed. But strong export demand and a breakthrough in GM negotiations with China brought prices off recent contract lows by $10/t (£7/t) on Tuesday. Rape values have followed and £150/t ex-farm is now achievable in most areas.

Kevin Bantick of Dalgety thinks this is the start of something good. "Demand is especially strong for rape and sunflower oil, which has insulated EU prices from the big losses in Chicago." And world demand for all vegetable oils should remain firm, he adds.

Meanwhile, wheat markets have also picked up. US values have gained $9/t (£6/t) since Oct 1, following good export sales and rumours of Chinese buying interest.

Better world prices have allowed UK wheat values to improve and strong consumer demand has offset lack of competitiveness on export markets. April-June prices have risen by £3-3.50/t, to about £80/t ex-farm. &#42