By FWi staff
OILSEED rape prices have continued to tumble, falling a further £12-£14/t since last week.
Values in the north-west plummeted yesterday (Tuesday), with seed prices dropping £10/t over the day. With prices at £143.70/t on Friday, many thought the bottom of the market had been seen.
But by yesterday lunchtime, values had slumped to just £134/t in some areas.
“Ive never seen a market fall back so much in one week before,” said one trader.
The devaluation of the Brazilian currency which has now fallen by up to 30% against the US Dollar, continues to be blamed for the slump in the rapeseed market.
However, a number of nervous French and German co-ops offloaded over 100,000 tonnes of rapeseed onto the market last week.
This sent prices crashing and it was this that many traders blame as the main cause for the weeks further falls.
The futures contract at Matif has given little encouragement to traders or producers, losing 10% in a week.
Futures are now trading at Euro200 (£139.50 at this mornings rate) – lower than many traders thought possible.
Rapemeal and rapeoil prices have also continued to drift, although not to the same extent as seed, said a spokesman from the Home-Grown Cereals Authority.
Large stocks, limited demand on domestic, EU and world markets are keeping a lid on prices, he said.
The situation is very volatile, said economist Rupert Summerscales of the HGCA. His advice to farmers with rapeseed still in store is to hang on for a while and see what happens.
He suggests that producers look at marketing next years harvest.