By FWi staff
OILSEED rape harvesting is now underway in some southern regions of the UK – but farmers have little to look forward as ex farm values dropped £10/t during last week.
New crop rapeseed has started the season below £100/t in some regions with most bids at about £100/t.
So far traders note that only small volumes have been cut and therefore few deals made. But even when the harvest starts in earnest little improvement is expected.
Futures also took a tumble during the week with September deliveries down £6 at £108/t in some regions while October deliveries fell £4 to £115/t.
James Read of Glencore Grain blames the dramatic fall in world veg-oil values for these price falls and warned that there was no quick fix solution.
“The cure for low prices is low prices,î said Mr Read. Producers might then be discouraged from planting next year and values could increase again.”
Mr Read said farmers were disappointed with the prices on offer and few were selling.
Glencore is quoting £107/t delivered for harvest, £50/t below what prices were last year.
US soya also came under pressure last week reaching 27-year lows on Thursday.
Ideal weather conditions for the soya bean crop has resulted in yield estimates of all time highs.
The supply increase is expected by many traders to lead to an upward revision to the closing stock forecast for the end of next season, noted the Home-Grown Cereals Authority.
Currency continues to have a major impact on the market with the Euro seeing new lows against the Dollar last week maintaining rapeoil values static.
Crush margins were slightly improved as a result of lower seed values and the unchanged oil prices.