By FWi staff
FOLLOWING weeks of downward movement, the oilseed rape market has finally shown some signs of a rebound as values continue to rise.
UK rapeseed climbed to £116/t ex-farm for spot deliveries today (Tuesday) and harvest values have risen to £114/t.
In some regions, spot quotes are £120/t, said Peter Daubly of BDR Agriculture. He said that the recent increase can be put down to problems sourcing spot seed.
Shipments have been delayed and there have been logistical problems, he said. This has pushed the price up. “In February there was a lot about on-farm, but now its getting tidied up, and theres not so much about,” he added.
But this present rebound is not certain to last. With a vessel in Liverpool and another due to arrive shortly, many in the trade are encouraging producers to sell.
“Sell on the peaks, because there are selling opportunities,” said Mr Daubly. Looking ahead at new season rape he cant see values climbing back to £160/t, but believes they will remain around £120-130/t ex-farm.
The Home-Grown Cereals Authority reckons the recent rebound is due to slow farm selling and a temporarily firmer Chicago soyabean futures market.
Reports of increased UK export activity lent additional price support, noted a spokesman from the HGCA. “Trade sources reported the shipment of UK rapeseed to Pakistan and China,” he said.
MATIF rapeseed futures rose as much as Euro10 last week on the back of a weaker Euro against the Dollar, along with increased third-country buying interest.