By FWi staff
DESPITE lower world wide oilseed prices over the week UK spot values have remained firm.
Ex-farm rapeseed inched £2 over the week to £115/t on the back of short covering. But other than a few deals, the market remains quiet.
Traders are reporting not just slow farm selling, but also slow demand for old-crop supplies.
Given that crush margins are currently not very favourable, seed is only purchased against the sale of oil, noted the Home-Grown Cereals Authority.
New-crop rapeseed fell again over the week, with harvest ex-farm values down at £110/t today (Wednesday).
Market participants are postponing their decisions until a better picture of the prospective record EU rapeseed crop can be obtained, said a spokesman from the HGCA.
And HGCA economist Heike Hintze commented that the prospect of a price rise in the near future is unlikely.
“Recovery in the long term would be dependent on a resumption in demand from emerging markets, and for supply to remain more in line with market growth,” she said.
“A major concern for the growers should be to reduce unplanned fluctuations in their returns.”
The Chicago soya futures markets continue to be dominated by the weather, with favourable planting conditions putting pressure on values.