OILSEED RAPE prospects for 2005-06 are encouraging, providing growers place sufficient emphasis on marketing the crop throughout the season, according to United Oilseeds.
With around a fortnight to go until the first crops reach the market, growers need to keep as many marketing options open as possible, said the firm’s Ian Munnery.
Latest indications suggest harvest prices of around £135/t delivered, rising to £145/t by November. At these prices and average yields, most growers should be able to make gross margins of £75/t, he said.
“Those able to produce nearer 4.9t/ha (2t/acre) will be looking at margins of £115/t or more.”
In the longer term, he anticipates rising OSR demand and falling production elsewhere in the world could lead to prices of nearer £150-155/t for harvest 2006.
“As we’ve found in recent years, though, the global market can be extremely volatile, with prices changing widely in a very short time. Growers must protect themselves by making use of all marketing tools at their disposal.”
One key piece of advice is to lock into reasonable prices whenever available over the growing season. Commercial pools trading on acreage rather than tonnage have also proved valuable, he added.
“Bitter experience has shown that watching the market carefully and selling a proportion of your production on a regular or pooled basis is a far better bet than aiming to hit the top of the market with the whole lot.”