Oilseed rape prices have firmed again this week as the supply and demand balance remains tight.

Prices were up about £6/t by Wednesday (27 October) to £325/t for old crop and up to £320/t for new crop.

A fall in the value of sterling against the euro, a rally in US soya bean futures and strong demand for European rapeseed were all supporting prices, merchant Gleadell said.

It coyly stopped short of calling the current rapeseed futures the season’s high, but with the May 2011 contract on the MATIF index trading at €402/t it will be hard for farmers to avoid the temptation to sell some significant tonnages.

“Overall market prices look set to remain supported in the short to medium-term,” said Gleadell.

“There is still some uncertainty regarding the impact of the sustainability legislation on biodiesel demand after 1 January, but today for the UK farmer it is all about the falling £:€.”

It seems the City mulled over George Osborne’s austerity measures and felt its confidence in the UK economy wobble – causing sterling to weaken to £1: €1.1256, which helped push OSR prices higher late last week.