Rapeseed price improves against the odds

By FWi staff

UK rapeseed values improved 1/t over the week on the back of a lack of farmer selling and a downward revision of US soya production.

US Department of Agriculture figures released at the end of last week showed a surprise cut in bean production and carryout stocks, giving a boost to prices.

The estimated crop size from the 1999 soya harvest was slashed by 30 million bushels, leaving a carryout figure of 365m bushels, noted Glencore Grain in its weekly market report.

This is a major drop from the carryover predictions made last July of 700, bushels.

But despite the price gains seen in US soya, European markets failed to respond, with MATIF rapeseed ending the week lower.

Market fundamentals remain equally bearish for UK rapeseed, noted the Home-Grown Cereals Authority in its weekly MI Oilseeds. Despite this and stronger Sterling UK, rapeseed prices improved, it added.

“Although some farmer selling was reported at the 105/t ex-farm mark, shortage of supplies on nearby positions kept prices at firm levels.”

Delivered values also improved between 1-1.50, with East Anglia at 113/t and Liverpool at 115.50/t.

April to June deliveries were up, at 117.50/t for Liverpool and 117/t for Erith.