19 July 2002

Selling might cap OSR values

OILSEED rape prices have improved slightly on the back of strong world markets, but harvest selling could limit further rises, say traders.

The current spot rape market has risen by just £1-2/t, to £135/t ex-farm, with November movement slightly better at £143/t. But harvest values are likely to be capped by increased farmer selling, says Centaur Grains oilseeds trader, Simon Ward.

The move in the market has been stimulated by concerns over soya yields in the US, due to a hot dry spell and this has caused the Chicago futures market to shoot up by about $27/t (£17/t) in the past few weeks.

Almost wiping out these gains though, is the £ strengthening against the $, and harvest progress across Europe.

"If you can avoid moving it in July and August, it is worth holding rape at least into September," says Mr Ward. &#42