OSR market stays quiet despite demand

By FWi staff

LIMITED farm selling, despite reasonable demand, has meant that UK rapeseed markets have remained quiet again this week.

And there is little hope of recovery until the New Year, said a spokesman from the Home-Grown Cereals Authority.

Delivered prices eased off with December delivered oilseed at £167/t. January prices are little better at £170/t.

Prices fell as they generally followed the price movements of the Chicago soyabean futures and rapeoil prices dropped for the same reasons, noted the HGCA.

But rapemeal prices are continuing to recover from their lows as consumer demand supports its value.

Values for oilseeds have moved up over the last fortnight, mainly in response to good demand in areas close to the crushers, said Ian Wallis of Cargill plc.

“But with an increase in end-product values unlikely, any further rally in ex-farm prices may slow the current crushing campaign,” he said.

Reduced weekly export figures along with improved weather conditions in South America have pushed soyabean and soyaoil prices down towards the end of the week.

Chicargo soya oil fell to its lowest levels over the past week falling as much as $25/t (£15.10/t). Meal prices did slightly better, rising $7/t as the weekly export volume rose over 150,000/t.

At present only about 20% of this years expected bumper crop in Australia has been harvested, but imports are expected into Europe as the next round of farm selling begins, said Mr Wallis.

China is also thought to take advantage of this supply as the 2 million tonne drop in the rapeseed harvest this season has led to domestic shortages. This may eventually limit the quantity of seed arriving in Europe, said Mr Wallis.

“Prices are expected to remain stable in the short term, though long-term prospects will be dependent on the eventual destination of both the Australian oilseed crop and the size of the South American soyabean harvest,” he said.