Prices inch up as OSR stays in store

Monday, 14 February, 2000

By FWi Staff

UK oilseed rape values inched up slightly over the week as farmers continued
to hold onto stores in the hope of higher prices.

But rain in South America has improved hopes for the soya harvest raising
oil prices and preventing values from climbing much further.

UK prices rose 1/t with February deliveries made to Liverpool inching up to
115.50/t. Deliveries made to Erith are at 114.50/t with Hull/Selby at
111.50/t.

April to June values are also up 1 at 118.50 for Liverpool and 117.50 for
Erith.

Price movements on the MATIF rapeseed futures market were less volatile,
showing little change on last week, noted the Home Grown Cereals Authority
in its weekly MI report.

“The weak Euro against the US Dollar continued to help the competitiveness
of EU seed on world markets.

“Ongoing export inquiries for EU rapeseed from Pakistan and Bangladesh were
reported.”

Planting of English oilseed crops are significantly down this season,
according to latest survey by MAFF.

English farmers have planted just 0.28 million hectares of rapeseed on
non-set-aside land compared to 0.39 million ha in 1998.

Winter linseed is also down at 0.01 million ha compared with 0.018 million
ha in 1998.

This reduction will be a reaction to the first year of agenda 2000 cuts in
area aid, said Heike Hintze-Gharres of the HGCA.

“Linseed is not as profitable as last year although if used as a break crop
it might still be worth it,” she added.