By FWi Staff
UK delivered rapeseed prices have now risen to their highest levels since mid-September. Values gained a further £2/t last week, increasing prices by as much as £10/t since their slump.
Firm Continental prices provided support, but the rise was mainly in reaction to firmer US soya values, noted the Home-Grown Cereals Authority. Producers remain slow to sell their seed and trade sources estimate that between 20-50% of this seasons crop is still to be sold.
Rapeseed prices nudged £164/t towards the end of last week and December futures have climbed as high as £165/t.
However, looking longer-term, prices are forecast to come under pressure once the Australian rape crop becomes available, warns Ian Wallis of Cargill plc: “This is likely to coincide with the release of remaining stocks in Europe, and may lead to an erosion in values.”
The major factor underlying the end-of-season market will be East Asian demand, particularly from China, believes Mr Wallis.
“China is expected to import reasonable volumes of oilseed rape until its own crop is harvested next May. Current values reflect expectations that these exports will materialise.”